The AMP Ltd (ASX: AMP) share price is up 5% after giving updates about the superannuation class action and legal action against insurers.
AMP is a diversified financial business that offers investments and banking products.
There were two announcements revealed by AMP.
Settlement of superannuation class action
AMP said an agreement in principle has been reached to settle the class action brought against N.M. Superannuation Proprietary, AMP Superannuation and AMP Services on behalf of certain superannuation clients and their beneficiaries for the period between July 2008 to May 2020.
The proceedings were about fees charged to members of certain AMP superannuation funds, and the interest rates received and fees charged, on cash-only fund options.
The total settlement is $120 million, subject to the finalisation and execution of a deed of settlement and approval by the Federal Court.
AMP said it would contribute approximately $75 million of the $120 million settlement, with the rest to be paid by insurance.
The ASX financial share noted that it makes no admission of liability in reaching the settlement.
The AMP CEO Alexis George said:
The settlement of this class action is another important step forward for AMP, which means we can put this legacy matter behind us.
We have transformed our superannuation offer in recent years and we remain focused on delivering for members, through strong investment returns, competitive fees and insurance, and quality service to our members.
Claim against insurers
In a separate ASX announcement, AMP said that it had reached agreements to settle with some insurers.
Legal proceedings were brought by AMP for amounts related to remediation programs. AMP sought recovery under its insurance policy of compensation and costs arising out of those historical remediation programs.
To date, proceeds totalling $44 million have been received.
AMP said it remains in discussion with a number of other insurers about these proceedings after a hearing in August 2025.
Final thoughts on the AMP share price
I’m not a legal expert, I’m not sure what will come of AMP’s ongoing discussions. But, it’s good to see that the business is finally resolving some of the long-standing issues that have plagued it for years.
I wouldn’t call AMP shares good value after rising 33% in a year, there are other ASX dividend shares that look much more appealing.
