This morning the AMP Limited (ASX: AMP) share price hit just $2.03 and is now down around 63% since trading for $5.43 in March 2018 just before its bruising appearances in front of the Royal Commission into financial services that included evidence that it had been charging life insurance premiums (of all things) to dead people.
In response to the Royal Commission's findings the group's CEO and chairwoman left the business and an overhaul or rebranding of AMP is still in the process of being completed. However, for the quarter ending March 31 2019 its wealth management business posted cash outflows of $1.8 billion, which includes its consumer-facing superannuation, retirement, and insurance products.
As a result of its troubles and ongoing remediation costs over the second half of calendar year 2018 it was also forced to slash its final dividend for the period to 4 cents per share, compared to 14.5 cents per share in the prior corresponding period. In other words the dividend falls are roughly in line with the share price falls as AMP shares like other assets are valued on estimates of future cash flows.
AMP is not out of the regulatory or financial woods yet and shares could remain under pressure.
