the numbers, assumptions and statements made in this

23 March 2018

Prepared for internal management and Board purposes only.

The numbers, assumptions and statements made in this document are for internal management purposes only and do not represent an agreed or final resolution nor anybody's view on any possible future events.

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AMP Superannuation Limited & N.M. Superannuation Proprietary Limited 2018-2020 Business Plan

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Table of Contents 1. Introduction ................................................................................................................................................ 3

2. Success for the Trustees ........................................................................................................................... 3

3. Operating environment .............................................................................................................................. 4

3.1 Economy ............................................................................................................................................ 4

3.2 Ageing population ............................................................................................................................... 4

3.3 Technology ......................................................................................................................................... 4

3.4 Regulation and politics ....................................................................................................................... 5

3.5 Superannuation .................................................................................................................................. 5

3.6 Life insurance ..................................................................................................................................... 5

3.7 M&A activity ........................................................................................................................................ 6

4. Strategic approach ..................................................................................................................................... 6

4.1 General approach ............................................................................................................................... 6

4.2 AMP’s Strategy ................................................................................................................................... 6

4.3 AMP’s portfolio review ........................................................................................................................ 7

4.4 Why AMP’s strategic imperatives support the Trustees’ purpose ..................................................... 7

5. Superannuation & Retirement Strategy ..................................................................................................... 7

5.1 Winning in Workplace......................................................................................................................... 8

5.2 Invest in Advised Wrap Offer ............................................................................................................. 8

5.3 Group initiatives supporting the Superannuation strategy ................................................................. 9

5.4 Mandatory compliance initiatives ....................................................................................................... 9

6. Trustee Objectives ..................................................................................................................................... 9

7. Trustee Resources ................................................................................................................................... 12

8. Risks ........................................................................................................................................................ 12

9. AMP’s strategic imperatives analysis ...................................................................................................... 14

9.1 ‘Manage for value’ businesses ......................................................................................................... 15

9.2 ‘Leverage to drive new growth’ businesses ..................................................................................... 15

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1. Introduction

AMP Superannuation Limited (ASL) and N.M. Superannuation Proprietary Limited (NM Super) are sole purpose superannuation trustees and wholly owned subsidiaries of AMP Limited.

ASL is the corporate trustee of three public offer superannuation funds:

1. AMP Superannuation Savings Trust (SST)

2. AMP Retirement Trust (ART)

3. AMP Eligible Retirement Fund (ERF).

NM Super is the corporate trustee of five public offer superannuation funds:

1. Super Directions Fund (SDF)

2. National Mutual Retirement Fund (NMRF)

3. Pro-Super Fund (Pro-Super)

4. Wealth Personal Superannuation and Pension Fund (Wealth Fund)

5. The Retirement Plan (TRP).

These funds together hold assets under management in excess of $122bn on behalf of over 2.9 million members1. MySuper offers are provided in the SST, ART and SDF.

Both ASL and NM Super hold a Registrable Superannuation Entity (RSE) licence issued by APRA in accordance with the Superannuation Industry (Supervision) Act 1993, and an Australian Financial Services licence (AFS) issued by ASIC for the purposes of the financial services laws under Chapter 7 of the Corporations Act 2001.

As the holder of both RSE and AFS licences, ASL and NM Super are subject to specific obligations regarding the way they conduct themselves as a superannuation trustee and as a financial services provider.

There is a common Board of Directors for ASL and NM Super (the Trustees) and a common approach is taken to managing the eight Funds. Accordingly, a common Business Plan is being produced for ASL and NM Super.

2. Success for the Trustees

The Trustees have articulated the principles that support their main purpose of delivering quality benefits and services for members today and into the future. These are:

• The Trustees meet their responsibility to set a clear tone around their expectations and communicate this clearly – they have a significant role in influencing the culture of AMP through their member advocacy (on behalf of existing and future members, and their beneficiaries), ethical stance and strong governance.

• The Trustees meet regulatory requirements, but go beyond these requirements where it makes sense to do so. The Trustees are also committed to maintaining strong, open relationships with the main regulators (APRA and ASIC in particular).

• The Trustees are committed to understanding and delivering on members’ best interests across all components of what they do. They are also able to demonstrate how they have acted as members’ advocates.

1 As at 31 December 2017

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• AMP’s customer centred strategy and its drive to be a goals-based enterprise is consistent with the Trustees’ views on delivering on their obligations to members. That said, through their independent view, the Trustees will challenge aspects of the implementation of AMP’s strategy if they do not feel it is in members’ interests, recognising the natural tension between affordability, benefits and service.

• Risk management for both the members and the Trustees is key – the Trustees expect AMP to have clearly thought through the risks and their mitigation, with a drive towards the best outcome for the risk being taken.

• The Trustees will focus their attention on particular areas of interest to drive outcomes for members, such as engagement of members in their superannuation, retirement income, investment performance and insurance benefits.

3. Operating environment2

The Trustees operating environment is undergoing unprecedented levels of change following rapid technology advancements, sustained regulatory pressure and intensifying competition in the wealth management and insurance industries.

3.1 Economy

The Australian economy is expected to experience GDP growth of ~3% p.a., continuing its 25-year growth run. The economy has transitioned reasonably smoothly from the end of the mining boom, with other sectors (namely housing and services exports) taking over as drivers of growth.

3.2 Ageing population

Over the next several decades, population ageing will have a range of implications for Australia, including; health, size of the working-age population, housing and demand for skilled labour. Like most developed countries, Australia's population is ageing as a result of sustained low fertility and increasing life expectancy.3

Australia's older generation (those aged 65 and over) continues to grow. In 2016, there were 3.7 million (15%) Australians aged 65 and over, increasing from 1.3 million (9%) in 1976. The number and proportion of older Australians is expected to continue to grow. By 2056, it is projected there will be 8.7 million older Australians (22% of the population).4

3.3 Technology

The convergence of exponential increases in data, computing power and automation is driving fundamental shifts in the way financial services organisations compete and operate. The rapid increase in mobile data capacity and the processing power of hand-held devices has allowed companies to capture more intimate knowledge of customers’ preferences and behaviours and therefore be able to personalise customer experiences.

Cognitive technologies such as artificial intelligence (AI) and machine learning are also being used to create operational efficiencies and improve the quality of decisions in real time. These advances, combined with increasing levels of automation and digitisation, are enabling organisations to achieve market-leading customer intimacy and to create seamless customer experiences.

2 Source: AMP strategic narrative draft as at 27 October 2017, with additions separately footnoted. 3 Source: Australian Bureau of Statistics. 4 Source: Australian Bureau of Statistics.

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In Australia, both incumbents and new competitors are capitalising on new technologies to gain a competitive edge. For example, Westpac, through BT Panorama, has collaborated with IgnitionWealth to develop its robo-advice capability.

3.4 Regulation and politics

Sustained regulatory and political scrutiny are continuing to impact the economics of distribution in the Australian wealth industry. Since its introduction in 2013, the Future of Financial Advice (FoFA) reforms are increasingly driving price-based competition, challenging the viability of vertical integration and cross-subsidisation.

Increasingly, regulators’ expectations for industry players are moving beyond compliance with legislated reforms, towards broader expectations on conduct that is in line with community views.

In August 2017, APRA flagged increasing expectations of RSE licensees for member outcomes to deliver ‘high quality’ and ‘value for money’ products and services, considering measures such as net returns relative to targets, costs of super and insurance, operating cost ratios, and net cashflows relative to asset base5.

Remediation and compliance costs are growing industry-wide as regulatory scrutiny has intensified6. Bipartisan support for further regulatory change remains, including increased adviser education standards; introduction of CIPRs7, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, as well as Productivity Commission reviews into competition in the financial system and default superannuation.

3.5 Superannuation

Australia continues to hold one of the largest superannuation systems in the world, with mandated growth doubling the $2.3t industry by 20268. Growth is also supported by the ageing population and customers that want and need help in preparing for retirement.

Despite strong growth, the industry has experienced sustained product margin compression, as competition from industry superannuation funds has grown and competitors have invested in their product and platform offerings.

Industry funds continue to expand across the value chain by internalising asset management and developing direct and face to face advice capabilities. In investment management, the shift to low cost passive products is continuing. These dynamics are driving greater price-based competition9.

3.6 Life insurance

In life insurance, the industry is undergoing a period of structural change. Margins have declined as profits have been impacted by low investment returns, adverse claims experience and high lapse rates10. Subdued margins are expected to remain the norm, in line with global peers11. Margin decline in the life market has coincided with a shift in the competitive environment, with more global players entering through inorganic acquisitions and executing aggressive growth strategies through pricing, enabled by a relatively low cost of capital12.

5 APRA letter to all RSE Licensees, ‘Assessing Quality Member Outcomes in the Superannuation Industry’ (31 August 2017) 6 ASIC Enforcement Report 7 Comprehensive Income for Retirement product, also referred to as “MyRetirement” 8 ASFA ‘Superannuation Statistics’ August 2017 9 APRA Quarterly Superannuation Performance March 2016 10 Based on Australian Securities and Investment Commission Form 388 Financial Reports FY11-16 11 S&P Global Market Intelligence 2011-15 RoE of major global insurers 12 IBID

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3.7 M&A activity

Sustained pressure in the domestic market has resulted in more Australian banks exiting or intending to exit the wealth management, insurance, and/or asset management businesses to focus on core banking.

CBA is progressing the sale of its life insurance arm (CommInsure) and its New Zealand business (Sovereign) to AIA Group for $3.8b. NAB, ANZ and Macquarie have also exited (or are in the process of exiting) the insurance business, leaving Westpac as the only major bank player continuing to invest. When exiting non-core businesses, the banks implement distribution agreements that leverage their extensive branch networks. (See section 4.3 for AMP information.)

4. Strategic approach

4.1 General approach

ASL and NM Super outsource to AMP to deliver quality member benefits and services today and into the future using a wholly outsourced model. AMP’s position as a leading provider of financial services and strong financial position place it well to deliver significant benefits to the Trustees’ superannuation members as it delivers on its broader customer-centred strategy. AMP’s strategy is detailed further in section 4.2 below.

AMP is the Trustees’ key outsource provider on the basis of its ability to:

• Both deliver and continually improve the bundle of services that support the delivery of quality member benefits and services including administration, investments and insurance.

• Maintain a transparent relationship between AMP management and the Trustee Boards / trustee management, which facilitates:

o comprehensive monitoring of services, and

o ongoing influence over key strategic decisions

• Commit to fixing errors impacting members a commitment to do the right thing.

In the Trustees’ view, outsourcing to AMP provides greater benefits to members than alternative outsourced models. This is because AMP’s deep customer research and innovative approach to helping its customers own tomorrow is firmly aligned with the Trustees’ purpose.

From time to time, the Trustees may drive specific strategic initiatives. In 2018, the Trustees will deliver a review of their insurance philosophy and strategy.

4.2 AMP’s Strategy

Given the relationship between the Trustees’ and AMP, understanding AMP’s strategy and position in the context of this operating environment is important, including beyond its superannuation businesses.

AMP is a leading wealth management company in Australia that is positioning itself to take advantage of positive long-term demographic and market trends, operating in large and growing markets where competition is rational and where AMP has a distinct competitive advantage.

The company states that it is pursuing a strategy for long-term growth with four key priorities:

• Tilting investment to higher growth businesses (Australian wealth management, which includes superannuation; AMP Bank and AMP Capital) with strong market positions, while releasing and recycling capital from lower growth businesses.

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• Transforming the core Australian business (including superannuation) to focus on helping customers achieve their goals.

• Managing costs to continue growing profitably in a margin compressed world.

• Expanding internationally by leveraging AMP’s key strengths into new markets.

4.3 AMP’s portfolio review

AMP has categorised its portfolio of businesses into three groups:

• Businesses where AMP manages for value and capital efficiency: AMP Insurance, Mature product and New Zealand. These businesses have faced slower and more limited revenue growth;

• Businesses where AMP invests to grow: AMP Bank, AMP Capital and Australian Wealth Management (channel and wealth solutions). These businesses operate within attractive markets and are areas of competitive advantage for the Group, through a leading wealth management market position, large adviser footprint and unique, goals-based engagement approach; and

• Businesses that AMP is looking to leverage to drive new growth: global investment management, Asian partnerships and new opportunities in global operating systems and advice.

In February 2018, AMP announced that it is well progressed with a portfolio review of the businesses it is managing for value – with all alternatives being considered. It also announced that it is in discussions with a number of interested parties. A further update at or before the AMP Limited annual general meeting in May 2018 is expected.

Operation of the Trustees’ funds is mainly covered in the “invest to grow” parts of AMP’s portfolio, with some of the closed products being held in the “manage for value” part of the portfolio. AMP Life, which is also a “manage for value” business, provides the majority (but not all) of insurance within superannuation for the Trustees’ members.

For the Trustees to deliver on their obligations, it will be important to monitor, influence and challenge how members’ obligations are being, and will be, met over time. At this point, all member promises are being delivered, but the Trustees will stay close to this as any portfolio changes progress.

The Trustees will assess the implications of any further strategic announcements by AMP and consider the impact on its members, operations and business plan.

4.4 Why AMP’s strategic imperatives support the Trustees’ purpose

The Trustees’ main purpose is to deliver quality member benefits and services today and into the future. A number of AMP’s key strategic imperatives support this purpose as outlined in section 9.

5. Superannuation & Retirement Strategy

AMP has defined its goal for its superannuation business as “to reinvigorate AMP as the leader in superannuation and retirement through offer design, management, customer experience and simplicity”. Over 2018 to 2020 the strategic intent is to build / grow for the future but manage today’s complexity through planning and investing in simplification.

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The two major programs being pursued are “Winning in Workplace” and “Investing in [AMP’s] Advised Offering”, which are intended to:

• Set up for the rationalisation of legacy products and systems, which will see members moved to contemporary offers

• Adapt to regulatory change

• Increase the competitiveness of offer to deliver outcomes to members.

5.1 Winning in Workplace

The key initiative under the Winning in Workplace program is Fund For Life, which will be focused on new member growth, addressing member outcomes, and setting up for large scale rationalisation in the future.

Rationalisation of the Trustees’ superannuation products is a significant multi-year transformation program that requires significant investment and commitment. It requires careful consideration of achieving equivalency for members without carrying forward complexity i.e. grandfathering.

Fund for Life will enable the start of this transformation process by building a destination vehicle for legacy products to be migrated to in the near future.

Leveraging the flagship corporate superannuation product, SignatureSuper, the solution includes creating a competitively priced and appropriately featured, job-starter to retirement proposition (i.e. “a fund for life”) for members who join through the workplace channel.

The initiative will require product, pricing (including MySuper and insurance) and member experience design, employer / adviser change management and member product migrations to the new customer and employer offer. This initiative will deepen member relationships, increase the pool of members available to engage in goals conversations, improve AMP’s brand positioning and enable AMP to better realise scale and size benefits.

This is a very significant program of work as evidenced by the matters being taken into account in the design, such as superannuation fund structure, MySuper offer and investments, member benefits, insurance design, participating agreements, and grandfathered commissions.

Other initiatives in this program involve investing in the Workplace Model which will aim to win and retain more corporate super mandates and engage and retain more existing members through the workplace channel. This initiative will require an optimised employer value proposition including employer account management and engagement, product and pricing design and strategy, group insurance offers and operational service excellence.

5.2 Invest in Advised Wrap Offer

This program encompasses a number of functionality improvements to AMP’s flagship advised wrap proposition (MyNorth), including Separately Managed Accounts (SMA) in FY18 and an integrated Cash Management Account (CMA) in FY19. These improvements will benefit superannuation members, as well as non-superannuation customers of AMP.

Ongoing investment will also be made to MyNorth’s functionality to ensure customer experience and efficiency benefits are continually delivered.

The wrap will continue to offer a wider array of investment funds and direct equities in separate tax vehicles to enable advisers to design appropriate strategies to help customers achieve their goals.

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5.3 Group initiatives supporting the Superannuation strategy

Superannuation members will directly benefit from broader AMP initiatives that will deliver more services to members. These include:

• Customer Lifecycle Management (CLM): This initiative is focused on delivering and designing targeted member experiences and includes key interactions points including super selection when starting employment through to job-change;

• Digital: These initiatives are focused on improving AMP’s digital strategy including content, engagement and fulfilment of key tasks to ensure dealing with AMP is seamless and easy;

• AMP Assist: This initiative involves scaling AMP’s omni-channel phone and digital based advice delivery including intra-fund to meet the channel needs of customers (including members);

• Goals 360: This initiative is a core AMP enterprise transformation program reshaping how advice is delivered through ‘goals’ based investing philosophies which is overlaid with new experiences and fulfilment processes. This initiative will enable goals experiences to be delivered to members in the workplace;

• Data and Analytics: This initiative will improve core infrastructure to enable AMP to manage and understand customer data including the execution of CLM initiatives; and

• Infrastructure, process and people: There are further investments committed to improve operational processes and people capabilities including the risk functions.

5.4 Mandatory compliance initiatives

There are a large number of regulatory and compliance changes that must be delivered in FY 2018. These initiatives respond to changes in Tax Laws Amendment Act 2016, Federal Budget changes, the transparency for customer fees enforced by RG97, Insurance in Super Code of Practice and Super Reforms 2018. The Group is supporting the investments required to implement these regulatory changes. The complexity of these changes comes with implementation risk, which is being managed the risk management processes.

6. Trustee Objectives

The Trustees have established four key objectives that support its key purpose of delivering quality benefits and services for members today and into the future. These objectives are:

• Optimise the delivery of member benefits and services by leveraging AMP’s capabilities. This will include advocating on behalf of members and beneficiaries to ensure their best interests are considered and acted upon;

• Ensure there are strong governance frameworks in place to meet and, where appropriate, go beyond regulatory requirements;

• Ensure there are robust processes in place to monitor the delivery of trustee and member benefits and services by its key service providers; and

• Ensure the appropriate management of risk in the delivery of member benefits and services.

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OBJECTIVE 1 Optimise the delivery of member benefits and services

2018-2020 priorities 2018 Init iatives

AMP portfolio • Ensure Trustee considerations are addressed in any forthcoming changes AMP portfolio changes that impact superannuation.

• Ensure changes are assessed at arm's length and that the delivery of member benefits and services are maintained at required levels.

Member outcomes • Work with AMP Product to develop the methodology for assessing member outcomes, in line with legislative and regulatory expectations.

• Identify areas for action and agree with AMP the scope and timing o those changes.

• For agreed initiatives (e.g. Fund for Life), monitor how member interests are being incorporated into the design and implementation.

• Monitor how member services are being delivered and enhanced .

Retirement Incomes • Engage with AMP as they develop their approach to Comprehensive Income Product for Retirement (CIPR - or MyRetirement).

Insurance in • Maintain current Insurance Management Framework and monitor its superannuation implementation.

• Develop a refreshed insurance philosophy and strategy by December 2018, informed by:

o a staged, methodical analysis of the external environment,

o an understanding of the Trustees' current insurance position anc planned initiatives, including those of our external insurers, and

o a clear hypothesis on a potential future state and the identification and assessment of any potential gaps between this and where the Trustees are likely to be based on current plans.

• Monitor (and challenge if necessary) changes to AMP Insurance as a result of AMP's "manage for value" approach.

• Monitor Insurers' implementation of the FSC Life Insurance Code of Practice and how this is impacting member experiences and outcomes.

• Determine the Trustees' approach to the Insurance in Superannuation Voluntary Code of Practice.

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OBJECTIVE 2 Strong governance frameworks


Business Monitoring • Undertake a wholesale review of the BMM that takes into account Model (BMM) (design) the member outcomes test and AMP's (as outsource provider)

operating model.

Maintain key • Deliver governance related items from 2018 Board program, Governance including review of Trustee policies as scheduled. Frameworks • Implement any improvement opportunities identified from the three

year operationally independent reviews (required under prudential standards) of the investment governance and conflicts management frameworks which are scheduled to take place during 2018.

Ensure an adequately • Maintain capability and engagement in the Trustee Services team to resourced and assist the Boards execute their business plan. empowered Trustee Services Team

Maintain Strong • Ensure regulators are kept up to date with key developments, and Regulator that their requests for information are actioned in a timely manner. Relationships • Schedule ongoing relationship meetings with key regulator contacts

as appropriate.

Remain informed • Maintain a watching brief on key changes in government policy about key regulatory (including in respect to superannuation taxation, governance and changes impacting product innovation). superannuation

OBJECTIVE 3 Monitoring processes


BMM (implementation)

• Ensure the effective ongoing implementation of the BMM, including assessment of meeting representatives from across AMP to ensure key issues impacting the Trustees are well understood.

•

•

•

Embed improvement opportunities identified in 2017, including requiring report providers to have documented processes, etc.

Conduct ongoing and targeted awareness/education sessions on the purpose and importance of the BMM with key AMP stakeholders.

Ensure the additional /complementary monitoring processes deployed by Trustee Services (including relationship meetings, lobbying and other similar activity) continue to inform the design and content of BMM Reports.

Additional Monitoring • Activities

Take an active role in high priority AMP initiatives as relevant, including Fund for Life.

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OBJECTIVE 4 Risk management

2018-2020 priorities 2018 Initiatives

Risk Culture • Clearly demonstrate the 'tone from the top' in relation to the management of risks which impact members and the Trustees.

• Support and reinforce any relevant risk culture initiatives across the AMP Group.

Ensuring appropriate • Continue to work with AMP Enterprise Risk Management (ERM) to identification and ensure that in the implementation of those aspects of AMP's management of risk strategy which impact members, risks and their mitigation have beer

clearly thought though.

• Focus on key areas of risk at each quarterly meeting in the lead up to the annual review of the Trustees' Material Risk Register review.

• Ensure that Board and DDAC papers requiring approval articulate risks to members and the Trustees.

Risk Management • Actively support ERM's progress in implementing improvements to

Framework the Enterprise Risk Management Framework, including closer alignment between risk and BMM reporting.

7. Trustee Resources

Both ASL and NM Super have entered into various agreements with AMP Group subsidiaries which enable the Trustees to provide key services including administration, insurance and investments to its members.

A key component of ASL and NM Super's resourcing is the Trustee Services Team, who support the Trustees' operations by:

• Holding and exercising various delegations

• Operating the Business Monitoring Model

• Providing SME governance and technical advice to key AMP stakeholders

• Supporting Board operations.

Trustee Services forms part of the Regulatory Governance Team, who provide investment and insurance governance oversight both in respect to ASL and NM Super but also for its key service providers AMP Life and NMMT.

8. Risks

The Business Plan should be read in conjunction with the Trustees' current Risk Appetite Statement (RAS), which provides guidance on the nature and level of risk that the Trustees are willing to accept in achieving their strategic objectives.

The material risks that the Trustees have identified through its planning and review process are described in the Trustees' Risk Management Strategy (RMS). The RMS describes the Trustees' strategy for managing risk, the key elements of their risk management framework and their approach to ensuring an appropriate risk culture.

The Trustees acknowledge that successful risk management is dependent upon a culture that is transparent, risk conscious and aware.

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A sound risk management culture is a core component of AMP’s Enterprise Risk Management Framework (ERMF) and is demonstrated through AMP’s Risk Culture Framework (depicted below):

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9. AMP’s strategic imperatives analysis

The Trustees’ main purpose is to deliver quality member benefits and services today and into the future. A number of AMP’s key strategic imperatives support this objective. For each, the view of the Trustees is described in italics.

Four strategic imperatives have been developed by AMP to support short-term performance and long-term competitive advantage:

Customer: Expert goals-based help throughout customers’ lives. AMP will get closer to the customer by taking a Customer Lifetime Management (CLM) approach, helping customers meet more of their needs through relevant and personalised engagement and solutions.

The Trustees support this imperative in the belief that more engaged superannuation members will lead to those members making decisions that positively impact their outcomes at and through retirement. The Trustees note that not all members will respond to engagement activities and that does not reduce the Trustees’ obligations towards them.

Omni-channel: Experiences delivered however and wherever the customer chooses. To transform the advice process for customers and grow shareholder value whilst meeting compliance standards, AMP will grow margin in advice, systematise aligned advice and optimise the distribution model. The Group will continue to build capability that provides customers greater choice in how they engage with AMP, through a broader, omni-channel ecosystem.

The Trustees support both the omni-channel ecosystem and the transformation of the advice process where this applies to its members. It is widely recognised that members want to engage through a range of channels depending on their needs and preferences. The points under the previous imperative regarding varying levels of engagement also apply here – not all members will seek advice or even actively engage, but activities designed to encourage them to do so in a way that suits them are valued by the Trustees.

Offers: Simple and compelling offers. The Group will invest in flagship offers to support AMP’s CLM approach, ensuring each is market competitive, and where appropriate, market-leading, and drives relevant customer engagement.

Again, the Trustees support this imperative and will work with AMP to understand the approach to non-flagship offers in line with member outcomes requirements.

Productivity: Easy, effortless processes and experiences. Over the course of the Plan, the Group will become increasingly efficient and responsive through enhanced end-to-end (E2E) journeys, data, reporting and analytics, shifting to agile change delivery, and rationalising legal and business entities. AMP will also commence the progressive rationalisation of underlying products and platforms.

This area is of particular interest to the Trustees in context of member outcomes and pathways to contemporary product solutions where appropriate. The Trustees are cognisant that older products deliver value to members and that this value cannot always be replicated through contemporary offers. The rationalisation of products and platforms will need to take this into account and Trustee approval of the initiatives in this area will be dependent on member outcomes.

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9.1 ‘Manage for value’ businesses

Manage AMP Insurance, Mature and New Zealand for value. AMP will manage the three businesses for value, generating reasonable yield and optimising for capital efficiency.

(Noting that New Zealand is not relevant to the Trustees.) As stated earlier in the Plan, for the Trustees to deliver on their obligations, it will be important to monitor (and if necessary influence and challenge) how members’ obligations are being, and will be, met over time. At this point, all member promises are being delivered, but the Trustees will stay close to this over time and enhance their oversight and monitoring if required.

As the provider of the vast majority of member insurance across the Trustees’ funds, the future of AMP Insurance is extremely important to the Trustees and initiatives in this area will be very closely monitored. Ensuring that the Trustees’ perspective and obligations are considered will be a major focus during 2018. Also relevant is the Trustees’ review of its insurance philosophy and strategy, which will be undertaken in 2018.

9.2 ‘Leverage to drive new growth’ businesses

These businesses have less relevance to the Trustees and are therefore not commented upon.

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the numbers, assumptions and statements made in this

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