Chief of AMP's financial services division Craig Dunn has announced his intention to stand for the newly vacant top position at Australia's largest life insurer.

Speaking to analysts following the release of AMP half year results Dunn said he would seek to be a candidate for the role.

"My hat is definitely in the ring," Dunn said.

Current chief executive Andrew Mohl announced he is to step down towards the end of 2007 after five years at the helm.

According to Morningstar analyst David Walker, AMP needs someone who know the business intimately and who can maintain the group's current momentum.

"What AMP needs now is a maintenance CEO, not someone looking to fix things. The worst thing they could do is appoint someone who would carry out the same acquisition mistakes they did 10 years ago," Walker said.    

Mohl, who has spent 11 years at AMP, was appointed as chief executive in September 2002 and led the company through the demerger of its UK operations in 2003.

His announcement came as the group reported a 32 per cent increase in first-half profit, following a lift in managed funds driven by record pension savings and stock market gains.

Net income for the group was $561 million in the six months to June 30, compared to $424 million for the previous corresponding period.

'These are the best results they have produced since becoming a listed company, so he is going out at the top," Walker said.

The group's wealth management division, which includes the financial planning, superannuation, pensions and banking businesses, saw earnings grow from $116 million to $145 million.

AMP assets under management grew 7 per cent to $130 billion from December 31.

AMP Capital Investors saw its operating earnings lift 42 per cent to $78 million for the half, with fee income growing faster than both costs and assets under management (AUM).

Total AUM increased 16 per cent over the year to $111.6 billion, which the group said reflected investment markets and increasing external cashflows.

Total fee income rose 28 per cent to $232 million, including a 39 per cent increase in externally derived management fees to $93 million.

External fees are growing significantly faster than internal fees, now comprising 51 per cent of total management fees compared with 40 per cent in the first half of 2004.