AMP Limited’s [ASX:AMP] share price has been crushed today, down 12% on the back of massive trading volumes.
It is now trading at $2.91, a 15-year low.
Below you can see the shares getting pummelled:
AMP’s share price hit by sale of life insurance arm
AMP announced on Thursday that it would sell its life insurance arm to British Resolution Life for $3.3 billion.
This represents a 20% below book value sale.
It is also the same life insurance arm that was caught charging dead people for life insurance.
Among other things weighing down its share price is the revelation that there was a sharp rise in clients withdrawing from its Aussie wealth management division in July, August and September.
In total, the 169-year-old business has lost 43% since the Banking Royal Commission began, and seven senior officials have left the firm in that same timeframe.
Where AMP’s share price can go from here
The company remains under a massive cloud.
That being said, it pays a healthy dividend yield of 7.8%.
For now, it’s still profitable with its first half of the year profit coming in at $115 million.
It would be a brave investor that jumps in on AMP now, but big financial companies have bounced back from regulatory scares in the past.
One to watch closely for sure.
For Markets & Money
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