Wealth manager AMP warns of hit to profit after loss in insurance business AMP chief Craig Dunn. WEALTH manager AMP has warned its full-year profit is expected to be hit with an $89 million loss from its insurance operations. In a statement to investors this morning, AMP said it expected up to a $50 million loss from its income protection business and a further $15 million loss to be set aside to strengthen its financial reserves to pay delayed claims. "In total these two adjustments are expected to result in a $55 to $65 million reduction in AMP's operating results for the fourth quarter 2013, in addition to any further experience outcomes in the fourth quarter," the statement said. However the company also advised a further and unexpected $24 million losses from its wealth protection business as customers cancelled their policies and others made higher than expected claims. The company also signalled it was reassessing the claims value of its life insurance portfolio - "which could lead to adjustments to the embedded value of the business." But the adjustments were "not expected to impact on the full year operating results," according to the statement, issued on behalf of AMP chief Craig Dunn. Investors were also advised that the losses and adjustments might impact dividend payments which traditionally are based on 70 to 80 per cent of full year underlying profits. The company will make its decision about the final dividend in February, taking into account "the conditions prevalent at that time," it said. In doing so, the board will give consideration to the fact that the expected capitalised loss ($40 to $50 million) is a non-cash item and would not reduce AMP's overall capital position. AMP shares were down 4.5 per cent at noon.