Australian insurer AMP has announced it intends to write up to A$1.2bn (£428m; $672m) off the value of its assets, mainly from its troubled British operations.

The latest bad news from Australia's 10th-largest company, by market capitalisation, came after it announced 1,200 jobs cuts in Australia.

AMP shares fell by up to 3% after it said "that there will be significant asset writedowns" before recovering to finish almost unchanged at A$12.48.

Shares hit a record low of A$10.73 in September, down from A$18.44 at the end of 2001, after it injected A$1bn to prop-up its British life insurance unit Pearl for failing to meet the London Stock Exchange's minimum capital reserve levels.

Credit rating agencies Standard & Poor's and Moody's downgraded AMP earlier this month, and put it on negative ratings watch after the announcement.

Poor outlook

"Previous valuations are no longer appropriate in light of the substantial falls in equity markets since 30 June 2002, difficult operating conditions and the changes in the business arising from the five-point reform agenda," new chief executive officer Andrew Mohl said.

"AMP believes the carrying value of these assets is unlikely to recover for some time and it will therefore be prudent to reflect a more realistic view in the balance sheet."

The exact value of the writedown, mainly of goodwill and other intangibles, would be known by the end of the year, the company said.

AMP said the A$1.2bn did not include restructuring or other costs, which would be determined by a strategic review.

AMP cut 1,500 jobs in June.