AMP has boosted its payments to shareholders on the back of a massive improvement in its life insurance business contributing to a 32 per cent rise in annual profit.
Shareholders will be paid an extra two cents per share after the wealth management giant's profit hit $884 million in 2014.
AMP shares have gained 23 per cent in the past month, and were up 16 cents, or 2.5 per cent, at $6.66 at Thursday's close.
Customers leaving the company's life and disability insurance division, and a spike in claims, were the reason for profit downgrades by AMP in 2013, but earnings in the business almost tripled to $188 million in 2014.
"The recovery in our wealth protection business has continued, and our focus is now on ensuring the impact of changes we have made are sustainable and long lasting," chief executive Craig Meller said.
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A new approach to managing claims and a better than expected number of lapses contributed to the businesses' improvement, he said.
More work needs to be done though, including offering more compelling insurance products to customers, Mr Meller said.
AMP's largest business, which manages superannuation and retirement income, lifted earnings by 13 per cent as its cashflow grew by $115 million to $2.3 billion.
AMP Capital, an investment manager, lifted earnings 16 per cent due to higher fees and improved returns on investments.
Mr Meller said customers were telling AMP they are happy with the advice they were receiving, but the company is improving the quality of training for advisers in the wake of findings of improper conduct in the industry.
AMP would continue to focus on reducing costs in the year ahead, which will improve efficiency and allow investment in customer service, he said.
AMP IMPROVES EARNINGS IN ALL DIVISIONS
* Net profit of $884m, up 32 pct from $672m in 2013
* Underlying profit of $1.05b, up 23 pct from $849m
* Final dividend of 13.5 cents, up from 11.5 cents
