Wealth management firm AMP reported an 11% increase in its net profit after tax to $42 million for the year to December 31, but says profit will be lower next year.

"Underlying net profit after tax is expected to be lower in FY 22 given margin headwinds and amended general insurance arrangements," the company says in its investor pack.

AMP lost around $1 billion in assets under management after losing its KiwiSaver default status, however the net position was softened by gains from strong investment markets.

Its net cash outflows during the year totalled $1.1 billion.

While the company lost KiwiSaver assets under management it says it is still  "a substantial participant in the overall KiwiSaver market with $6.1 billion in assets under management.

it also says it is a significant player in the corporate superannuation market with 36,000 clients and a 42% market share.

AMP continues to cut costs and says in the financial year they were down 5% to $38 million primarily due to lower employment and information technology costs.

"The business continues to simplify and transform its operating model and lower property costs following a reduction in office footprint." Its cost to income ratio fell from three percentage points from the previous year to 39.5% this year.

AMP Wealth Management New Zealand managing director Blair Vernon, was not available for comment, but said in a statement, "this is a solid result which reflects our strong focus on ensuring good client outcomes.

“In July 2021 we delivered a new investment approach with a focus on sustainable investing, which resulted in a material fee reduction for our AMP KiwiSaver Scheme clients of up to 40%.

“As part of the transformation, our commitment to helping reduce the impacts of climate change through our core business delivered an initial reduction of ~60% in exposure to carbon emissions across our entire investment portfolio.

“The transition to an index management investment approach and the appointment of BlackRock Investment Management will deliver ongoing value for our clients.

“Looking ahead we will continue to innovate our business including further enhancing and simplifying our products and services to deliver more value for clients. In the first half of the year this includes our intention to deliver a new digital only managed fund product, leveraging our state-of-the-art technology and our sustainable investment approach to help our clients continue to grow their investments.”