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.