AMP completes exit from AMP Life business

On Wednesday (3 November), the wealth giant announced it has agreed to the divestment of its 19.13 per cent equity interest in Resolution Life Australasia (RLA) for a consideration of $524 million to Resolution Life Group.

AMP Life was originally sold to Resolution Life last year for a consideration of $3 billion, including the equity interest in RLA.

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AMP and RLA have also settled some post-completion adjustment and claims that has resulted in AMP paying RLA $141 million. The settlement will add a one-off expense of $65 million in the financial year 2021.

AMP chief executive Alexis George said the move will allow the group to realise capital by $459 million and strengthen its balance sheet ahead of next year’s demerger plans.

“The separation of our businesses is progressing well and will continue until mid-next year as planned,” Ms George said.

“We will continue to provide transactional services to RLA, as agreed, and will have a shared customer and adviser connection into the future.”

AMP Life and Resolution Life CEO Megan Beer said the acquisition is a significant milestone for the company as it gears up for a new phase and future growth.

“Our vision is to be the leading in-force specialist life insurer in Australasia and we believe we can achieve this by being customer focused and data driven,” Ms Beer said.

“As an in-force provider we have a truly unique customer proposition – it means we are focused only on serving our existing customers and adapting our offering to specifically meet their needs.

“We are well positioned for growth in the Australian and New Zealand markets through managing our customers’ existing policies as their needs change, transforming our business and by continuing to adopt a disciplined approach to acquisitions.”

In September, AMP announced several senior management movements in anticipation of the demerger.

The changes included the promotion of AMP Bank’s managing director Sean O’Malley to executive committee. Mr O’Malley has over 25 years’ banking experience and joined AMP from Westpac in 2013.

The divestment is expected to be completed in 1H 2022.