Why Is AMP Defending Two Major Legal Battles in 2025?
AMP Limited is set to defend itself against a new class action alleging inflated life insurance premiums and a separate dispute over a major property sale, signaling potential challenges ahead for the financial services giant.
- Class action filed against AMP superannuation entities over life insurance premiums from 2019-2024
- Legal dispute involving AMP and Dexus over Macquarie Shopping Centre sale value
- AMP and related entities committed to defending both proceedings
- Proceedings filed in Federal Court Victoria and Supreme Court New South Wales
- Potential reputational and financial implications for AMP Limited
New Class Action Targets AMP’s Life Insurance Premiums
AMP Limited has announced it will vigorously defend a recently filed class action proceeding in the Federal Court of Victoria. The lawsuit targets N.M. Superannuation Proprietary Limited, AMP Superannuation Pty Limited, and Resolution Life Australasia Limited, alleging that certain members of AMP’s superannuation funds were charged higher premiums for life insurance products between 2019 and 2024. These products include death-only cover, total and permanent disablement cover, and income protection cover.
The claim raises questions about the pricing practices within AMP’s superannuation insurance offerings, a sensitive area given the widespread reliance on these products for financial security. While AMP has not disclosed the potential financial exposure, the class action could attract significant attention from regulators and members alike.
Property Sale Dispute Adds to Legal Challenges
Separately, AMP is also defending a legal proceeding initiated by Dexus Funds Management Limited in the Supreme Court of New South Wales. This dispute centers on the sale value of the Macquarie Shopping Centre, a transaction linked to the former AMP Capital business sale. The case involves Collimate Capital Limited and AMP Group Holdings Limited, highlighting the complex aftermath of AMP’s divestment activities.
The disagreement over the property’s sale price underscores ongoing tensions between major players in Australia’s property and asset management sectors. For AMP, this adds another layer of legal scrutiny that could impact its asset management reputation and financial results.
Implications for AMP and Investors
AMP’s decision to defend both proceedings signals confidence in its legal position but also highlights the growing legal risks facing financial services firms managing large superannuation and asset portfolios. Investors will be watching closely for any updates on these cases, as outcomes could influence AMP’s financial health and market perception.
While the company has not provided guidance on potential costs or timelines, the dual legal challenges come at a time when transparency and fair pricing in superannuation insurance remain under intense scrutiny from regulators and the public.
Bottom Line?
AMP’s legal battles over insurance premiums and property sales mark a critical test of its resilience and governance.
Questions in the middle?
- What financial impact could the life insurance class action have on AMP’s earnings?
- How might the property sale dispute affect AMP’s asset management strategy?
- Could these legal proceedings trigger regulatory investigations or reforms in superannuation insurance?