In a statement to ASX, AMP re-iterated that, under the terms of the agreement, Resolution Life assumes the risks and profit impacts from 1 July 2018.
However, AMP remains responsible for the operations and capital management of these businesses until the sale completes.
“The $105 million operating loss for the sold businesses in 2H18 reflects approximately $180 million of capitalised losses from AMP’s best estimate assumption changes and approximately $50 million of experience losses,” AMP said.
“Therefore, AMP is required to reserve approximately $100 million of capital until completion.”
AMP noted its total business unit operating earnings in 2H18 are expected to be approximately $220 million.
It said this comprises around $325 million from the retained businesses (Australian wealth management, AMP Capital, AMP Bank and New Zealand wealth management and advice) and a net operating loss of around $105 million from the businesses subject to completion of the agreement with Resolution Life.
