This lumbering insurance group reported an $896m loss for the year to 31 December 2002. Half the board, including chairman Stan Wallis, have fallen on their swords. Better late than never we suppose. The final dividend was cut to 20 cents, 15% franked (ex-date 31 Mar), down from 26 cents last year. This is a red flag in our view. Starving shareholders of six cents per share will only save AMP $70m – a desperate move for a company with $158bn in assets. Unless the company is in serious trouble, that relatively small amount won't make much difference to the group. But it will make a big difference to many of the retired shareholders who rely on their dividends. For this reason, we're not comfortable enough to upgrade AMP even though the price has fallen 25% since issue 120/Feb 03 (Hold while Unstable - $9.20). It's been a woeful saga. HOLD WHILE UNSTABLE.