AMP's Mohl to stand down

Mr Mohl told the AMP board of his intention to resign earlier this year, so the group has already whittled down potential successors to a short list of internal and external candidates.

Current head of AMP Financial Services Craig Dunn is believed to be the standout replacement for Mr Mohl, who will leaves at the end of this year.

Mr Mohl on Thursday ruled out taking another chief executive position and said the timing of his resignation was not prompted by the condition of the local sharemarket, which some believe has peaked.

"I'm counter-cyclical," Mr Mohl quipped, when pressed by journalists.

"I took over at midnight and left at midday."

Mr Mohl, who took the reins at AMP in the days of its ill-fated UK expansion, believes recent, intense share market volatility reflects a healthy correction in an ongoing bull market.

He also said AMP had "negligible" exposure to risky US sub-prime mortgages.

Stellar share market returns helped the wealth manager and insurer to a 35 per cent increase in first half profit to $470 million, and a 32 per cent rise in profit before accounting mismatches to $561 million.

Underlying profit, which provides a better reflection of the group's progress, rose 27 per cent to $534 million, smashing analyst's expectations of a figure just under $500 million.

Looking ahead, Mr Mohl said AMP was well placed to capitalise on changes to tax rules that will stimulate bigger superannuation contributions.

He also expects Australia's ever-swelling superannuation pool to sustain annual double digit earnings growth over the longer term.

On the downside, Mr Mohl doubts local shares will continue to post sky-high returns for the rest of the year.

"Our future forecasts are based on the assumption that markets grow at around six per cent per annum, plus dividends, from the middle of 2007," he said.

Mr Mohl said the company had a $6 million exposure to US sub-prime mortgages out of $130 billion in total funds under management.

He acknowledged that the cost of credit had lifted as a result of the US sub-prime mortgage crisis, but said the rise wasn't causing AMP any concern.

Despite the rising cost of credit, AMP will take on more debt to increase already record levels of return on equity, although it didn't have to do so immediately.

Over the past few years, AMP has returned $2.25 billion to shareholders, but Mr Mohl reiterated that any future returns would be smaller and less frequent.

A smaller capital return may take place in 2008, Mr Mohl said, with a decision expected at the end of this year.

In more good news for investors, Mr Mohl said AMP was likely to achieve its 2005 goal of doubling the value of an investment in the company in the 2007 second half, which is much earlier expected.

AMP on Thursday extended its original goal to a rolling five year target, consistent with average growth of 15 per cent per annum across the cycle.

Mr Mohl, who was appointed chief executive in September 2002, said he would spend time on other business, community and private interests, including spending more time with his family.

Current head of AMP Financial Services, Craig Dunn, was being endorsed by chairman Peter Mason as the "outstanding" internal candidate to replace him.

Mr Mason said the board would advocate a continued strategy of organic growth for the company.

AMP declared an interim dividend of 22 cents, up from 19 cents in the 2006 first half.

Its shares rose 20 cents, or about two per cent, to $10.05.