Why the AMP share price just hit another new low

The AMP Limited (ASX:AMP) share price hit just $2.11 today.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AMP Limited (ASX: AMP) share price hit a multi-year low of $2.11 today as shareholders continue to wear the fallout of the Royal Commission for the business.

Shockingly this former blue-chip has now lost around 55% of its value over the past year and is down nearly 75% over the past 10 years.

This suggests AMP's problems extend far beyond its regulatory failings and the Royal Commission findings, as it now seeks to restructure its business in an attempt to half its precipitous decline.

Under its new chairman AMP has agreed to sell its struggling life insurance business to UK-based Resolute Life, which will leave it to focus on AMP Capital its investment management business, and AMP Bank, alongside its remaining financial advice businesses in Australia and New Zealand.

In 2018 AMP made an underlying profit of $680 million and paid just 14 cents per share in dividends. Given the share price performance it seems investors are not expecting much better in 2019.

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.

More on Share Fallers

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

Why AIC Mines, ASX, Karoon Energy, and Life360 shares are falling today

These shares are falling more than most on Tuesday. But why?

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why ASX, CSL, Galan Lithium, and NextDC shares are dropping today

These shares are starting the week in the red. Let's find out why.

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Austal, Fenix Resources, Metcash, and Polynovo shares are falling today

These shares are ending the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Chalice Mining, Predictive Discovery, Premier Investments, and St Barbara shares are sinking today

These shares are missing out on the good time on Thursday. But why?

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Share Fallers

Why Cogstate, European Lithium, GQG Partners, and Lindian Resources shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Bapcor, Emeco, Liontown, and PWR shares are tumbling today

These shares are having a poor session on Tuesday. What's going on?

Read more »

Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today
Share Fallers

Why is the Bapcor share price crashing 19% on Tuesday?

Investors are punishing Bapcor shares today. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Andean Silver, Boss Energy, Chalice Mining, and Rio Tinto shares are falling today

These shares are starting the week in the red. But why?

Read more »