Why the AMP share price just hit another new low

The AMP Limited (ASX:AMP) share price hit just $2.11 today.

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The AMP Limited (ASX: AMP) share price hit a multi-year low of $2.11 today as shareholders continue to wear the fallout of the Royal Commission for the business.

Shockingly this former blue-chip has now lost around 55% of its value over the past year and is down nearly 75% over the past 10 years.

This suggests AMP's problems extend far beyond its regulatory failings and the Royal Commission findings, as it now seeks to restructure its business in an attempt to half its precipitous decline.

Under its new chairman AMP has agreed to sell its struggling life insurance business to UK-based Resolute Life, which will leave it to focus on AMP Capital its investment management business, and AMP Bank, alongside its remaining financial advice businesses in Australia and New Zealand.

In 2018 AMP made an underlying profit of $680 million and paid just 14 cents per share in dividends. Given the share price performance it seems investors are not expecting much better in 2019.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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