Insurance heavyweight AMP Limited has closed its VC fund after a difficult year for the troubled company. The unit, called AMP New Ventures, was axed following a strategic review, ending a promising source of Australian capital for fintech startup.
In an internal email, leaked to the The Australian Financial Review, AMP group executive Paul Sainsbury said, ”The decision was made to not allocate capital for new ventures.
“As a result, our New Ventures team won't continue and the team's roles have been made redundant. We have spoken to all of the team members, and will be supporting them through redeployment.
“This is in no way a reflection of their performance, but the group's priorities given the current circumstances.” he said.
In the fund’s short life, it invested in three fintech startups: MoneyBrilliant, Macrovue and Employment Hero.
The decision follows the company saying it would take a $1.2bn AUD hit in payouts and fines. Australian life insurance companies were rocked by a scandal in March last year, when it was revealed that they were refusing legitimate insurance claims. Life insurers have lost customers and public trust across the board.