Why AMP Limited shares just hit a new 52-week low

Just when AMP Limited (ASX: AMP) shareholders were starting to think things couldn’t get any worse the financial services and general insurance group printed a new multi-year share price low of $3.12 today.

Investors are heading back for the exits probably because of more shocking revelations coming out of the Royal Commission as to some of the dodgy business practices across the general insurance sector. This week the likes of Commonwealth Bank of Australia’s (ASX: CBA) CommInsure and junior player Freedom Insurance Group Ltd (ASX: FIG) have copped a hiding after some of their business practices were exposed before the commission.

Moreover, it seems almost certain that ASIC and the commission will recommend significant reforms of the sector including when conflicted remuneration is permissible across the business models of general insurance providers.

AMP was already on the canvass after the Royal Commission exposed its fees-for-no-service scandal across its financial advice business that resulted in the departure of its then CEO and chairwoman in quick time.

The group posted a profit of $115 million for the six months ending June 30, 2018, which includes the impact of a $290 million provision set aside to cover remediation costs as a result of its recent operational failings.

OUR #1 dividend pick to grow your wealth now is revealed for FREE here!

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.