Reborn AMP launched in Sydney

AMP's bosses hope the worst is over

Australian insurer AMP has made a robust stock market debut after the demerger of its ailing UK operations.

Shares in AMP rose by 12% on Thursday, to a price that represents a 25% premium over what retail investors paid in last week's rights issue.

AMP is now trading without its British unit, HHG, which comprises insurers Pearl, NPI and London Life, a fund manager, and a financial-planning firm.

HHG's shares are due to launch in London on 23 December.

The split dates back to May, when after numerous restructuring exercises and capital injections, AMP decided to cut its losses and withdraw from Britain.

North-south divide

AMP's operations in the Southern Hemisphere remain in profit, while it has lost some 7bn Australian dollars (£2.9bn; $5.2bn) in the UK.

HHG is believed likely to be worth just one-fifth of AMP when it lists next week.

The Sydney launch, AMP managers hope, will bring an end to the company's very public suffering.

AMP's shares have dived by about 70% in the past two years, after persistent losses and some A$4bn in writedowns.

Some analysts feel the split may also be a prelude to an acquisition of AMP.

National Australia Bank has expressed interest in buying the insurer, but has gone quiet in recent months.