In a trading update this morning, AMP is announced its intention to seek divestment of its New Zealand wealth management and advice businesses via an IPO in 2019. AMP said the decision to proceed with an IPO and its timing remain subject to market conditions and regulatory approvals.
“These businesses have FY18 pro forma operating earnings of approximately $40 million on a standalone basis,” the group said. “The IPO would release capital to AMP and create a standalone New Zealand wealth management and advice business.”
AMP also announced the sale if its life insurance business to Resolution Life for total cash and non-cash consideration of $3.3 billion.
“The completion of our portfolio review marks a major step forward in reshaping AMP as a simpler, more focused group, that is well positioned to compete in our core markets,” AMP acting CEO Mike Wilkins said.
“Delivering the right outcome for customers, shareholders and employees has been our focus throughout the portfolio review.
“For customers, there will be no change to their existing insurance policy terms or conditions. They will benefit from Resolution Life’s deep expertise in managing in-force insurance policies and its commitment to customer service.
“For shareholders, the agreement with Resolution Life and our exit from wealth protection and mature delivers important strategic benefits. It substantially simplifies our portfolio, delivers certainty and frees up capital.
“For employees, it provides certainty of outcome with a business that is culturally aligned with AMP. Our highly-experienced teams supporting insurance and mature customers are expected to largely transfer with the sold businesses, delivering continuity and stability for customers.
Mr Wilkins said AMP’s incoming CEO, Francesco De Ferrari, has a mandate to transform the group and today’s announcements will create “greater flexibility” as he sets the new strategy for AMP’s simplified business portfolio.
Amp is no different to any financial planners book or business out there. It is basically a basket case. Almost worthless without huge and massively complex write back clauses and opt outs from the next buyer. You would need to have ZERO understanding of financial planning and rocks in your head to consider buying any advice related business.
AMP needs to wash itself out of advice, rid itself of advisers and sell everything to then focus on doing one thing well. Maybe it’s as a fund manager. Advice is a noose for everyone. You can’t make money from it anymore without huge complications and future litigations.
Poor editing. Para 4 should have been para1
Which means New srategies going forward No.1 / Sell New Zealand if anyone will underwrite a new IPO while there is an assumed value left and any mugs left that will buy it . 2/ carve off the insurance arm and get rid of hundreds of staff 3/ look at what ever else we can sell because our model of paying volume bonus s’ as a now grandfathered marketing allowance may soon stop 4/ Our reputation is in tatters and any other suggestions would be welcolmed .
So Mr. De Ferrari will have about half the number of divisions in the business left to “transform” when he gets there in about 5 weeks time?