AMP sells life insurance arm for $3.3b

Company News

by Rachael Jones

AMP (ASX:AMP) has agreed to divest its Australian and New Zealand wealth protection and mature businesses, AMP Life, to Resolution Life for a total consideration of $3.3 billion.

The company will maintain an equity interest in Resolution Life.

The transaction is expected to be completed in the second half of 2019.

They also plan to reinsure New Zealand retail wealth protection for total proceeds of $3.45 billion.

AMP has entered into a binding reinsurance agreement with Swiss Re for the New Zealand retail wealth protection portfolio which is expected to release up to A$150 million of capital to AMP, subject to regulatory approval.

Shares in AMP (ASX:AMP) trading 3.6 per cent lower at $3.19.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.