Just when AMP Limited (ASX: AMP) shareholders were starting to think things couldn't get any worse the financial services and general insurance group printed a new multi-year share price low of $3.12 today.
Investors are heading back for the exits probably because of more shocking revelations coming out of the Royal Commission as to some of the dodgy business practices across the general insurance sector. This week the likes of Commonwealth Bank of Australia's (ASX: CBA) CommInsure and junior player Freedom Insurance Group Ltd (ASX: FIG) have copped a hiding after some of their business practices were exposed before the commission.
Moreover, it seems almost certain that ASIC and the commission will recommend significant reforms of the sector including when conflicted remuneration is permissible across the business models of general insurance providers.
AMP was already on the canvass after the Royal Commission exposed its fees-for-no-service scandal across its financial advice business that resulted in the departure of its then CEO and chairwoman in quick time.
The group posted a profit of $115 million for the six months ending June 30, 2018, which includes the impact of a $290 million provision set aside to cover remediation costs as a result of its recent operational failings.
