{"id":42752,"date":"2018-10-25T08:20:44","date_gmt":"2018-10-24T22:20:44","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=42752"},"modified":"2018-10-29T07:05:56","modified_gmt":"2018-10-28T21:05:56","slug":"amp-to-sell-life-insurance-business","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2018\/10\/25\/amp-to-sell-life-insurance-business\/","title":{"rendered":"AMP to Sell Life Insurance Business"},"content":{"rendered":"

AMP has announced it will sell its Australian and New Zealand life insurance businesses to Resolution Life<\/a> for $3.3 billion in a deal that is expected to be completed by the second half of 2019.<\/p>\n

\"\"<\/a>
AMP Acting Chief Executive, Michael Wilkins<\/figcaption><\/figure>\n

The decision to sell its life insurance arms comes at the conclusion of a long-running review which will also result in a binding agreement with Swiss Re to reinsure the New Zealand insurance business, and a planned move out of wealth management and advice businesses in NZ via initial public offering in 2019.<\/p>\n

Under the terms of the sale agreement, AMP will receive $1.9 billion in cash, $600 million from future earnings of the Australia and NZ life businesses, a $515 million interest in Resolution Life, and $300 million in shares in AMP Life.<\/p>\n

Resolution Life will also assume all risk and profits for the life insurance business from from 1 July 2018 and AMP stated that all existing terms and conditions will be retained, and AMP staff will transfer to Resolution Life on completion of the deal to maintain continuity of service.<\/p>\n

…AMP stated that all existing terms and conditions will be retained…<\/h6>\n

The reinsurance agreement with Swiss Re for the New Zealand life insurance business is expected to release up to $150 million of capital for AMP and will be effective from 31 December 2018.<\/p>\n

The arrangement will cover approximately 65 per cent of the New Zealand retail life insurance portfolio for new claims incurred from that date but are expected to reduce New Zealand profit margins by $20 million on a full-year basis.<\/p>\n

AMP stated the exit from retail life insurance in Australian and New Zealand, which was first flagged in August 2018 (see:\u00a0AMP Flags Possible Sale of Life Business<\/a>) would simplify the company and enable it to focus on its Australian wealth management business, AMP Capital and AMP Bank.<\/p>\n

AMP Acting Chief Executive,\u00a0Mike Wilkins<\/strong> said AMP customers would see no change to their existing insurance policy terms or conditions and would benefit from Resolution Life\u2019s expertise in managing in-force insurance policies.<\/p>\n

\u201cFor 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,\u201d he said.<\/p>\n

\u201cFor 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,\u201d Wilkins added.<\/p>\n

Resolution Life is an international insurance and reinsurance group that has ownership or involvement in 27 life insurance companies across the world with\u00a0operations in London, Bermuda, and United States.<\/p>\n

Resolution Life Executive Chair,\u00a0Sir Clive Cowdery<\/strong> said, “The acquisition of AMP Life is consistent with our strategy to grow the business beyond our traditional markets in Europe and the United States and we see scope for further consolidation in the Australian life market.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

AMP has announced it will sell its Australian and New Zealand life insurance businesses to Resolution Life for $3.3 billion in a deal that is expected to be completed by the second half of 2019.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,4,5],"tags":[],"class_list":["post-42752","post","type-post","status-publish","format-standard","category-company-news","category-products","category-services"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/42752","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=42752"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/42752\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=42752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=42752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=42752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}