AMP Group (AMP) reported a Statutory Net Profit after Tax (NPAT) of $523 million, up 3.16% over the prior corresponding period (pcp). Cash profit was $513 million, down 10% on pcp, and was below expectations. The result was driven by higher claims experience (losses of $42 million) in the Australian Wealth Protection (AWP) business. Overall AMP operating earnings was $515m (down 9.5% on pcp) with AMP Capital ($83m, up 15.3%), AMP Bank ($59m, up 18.0%) and New Zealand Financial Services ($62m, up 1.6%) being the positive contributions.   The poor performance of AWP should lead to a renewed focus by AMP to accelerate their plans to buy reinsurance protection across the business. This should also help to release capital as AMP outsources this risk as other general insurers have already done.   As at 30 June 2016 the reported group minimum regulatory requirement (MMR) was 2.41x (down from 2.63x on pcp) and is expected to drop further to 2.1x following the interim dividend payment on 7 October 2016. As a result, AMP reported surplus capital of $1.917 billion (down $405m over pcp). AMP Bank’s CET1 ratio of 7.9% remains flat over the half and on pcp.   While APRA deferred their proposed capital requirements for conglomerate groups (level 3 institutions) in March 2016 (with implementation no earlier than 2019) they intend to re-consult on these requirements in mid-2017 or later. AMP expect to meet any additional capital requirements resulting from this from within existing capital resources based upon standards in their current form.   Click here for updated research.