AMP leans on its insurers on remediation
The bulk of AMP Limited’s $120 million superannuation class action settlement will be met by its insurers, as the company confirms the degree to which it has leant into its insurance cover.
At the same time as confirming the $120 million settlement amount, AMP separately announced to the Australian Securities Exchange (ASX) that it had reached agreements to settle with some insurers legal proceedings brought by AMP for amounts incurred in historical remediation programs which concluded in 2022.
“AMP sought recovery under its insurance policy of compensation and costs arising out of these historical remediation programs,” it said.
The company told the Australian Securities Exchange (ASX) that, to date, proceeds totalling $44 million have been received.
It said that it remained in discussions with a number of other insurers in relation to the proceedings following a hearing in August, this year.
AMP’s announcement of its $120 million superannuation class action settlement was closely followed by an announcement by law firms Maurice Blackburn and Slater and Gordon noting they had alleged that AMP’s superannuation trustees failed in their duties to ensure fees were set and maintained at a level consistent with members’ best interests in the period from 2008 to 2020. As a result, AMP’s superannuation members were alleged to have been overcharged.
“This settlement is a major step toward justice for millions of Australians who trusted AMP to safeguard their retirement savings,” Maurice Blackburn national head of Class Actions, Rebecca Gilsenan said.
“The class action alleged that AMP’s superannuation trustees prioritised the financial interests of the AMP Group over those of its members. Transparency and fairness are fundamental to the integrity of the superannuation system, and the financial security of Australians is placed at risk when those principles fall by the wayside.”
Slater and Gordon Head of Class Actions, Emma Pelka-Caven said the outcome sent a strong message to superannuation trustees across the industry.
“Australians deserve to have their retirement savings managed with integrity and diligence. We are proud to have helped deliver accountability and compensation to those affected.”
I’m surprised they didn’t try to put it through the CSLR levy, we all know all wrong doings are ultimately the fault of financial planners.
They were indirectly paid for by the AMP planners that got done over when AMPFP illegally changed the BOLR contracts. Basically a smaller section of financial planners paid for it.
How much did the silver tongues charge for their litigation?