AMP embarks on $1 billion remake
AMP has announced what it describes as a reinvention of its wealth management business including a shift in focus to direct-to-client channels and digital solutions together with a further integration of AMP Bank solutions and wealth management.
The company has directly referenced having "fewer, more productive advisers" and altering buy-back arrangements.
At the same time AMP has declared it will further localise New Zealand wealth management, exploring options to divest and together with Resolution Life create a new holding company for its life insurance businesses.
The company has said its strategy would be supported by a $1 billion to $1.3 billion program to invest in transformation in doing so it also announced a $650 million capital raising
AMP announced that it also entered a revised agreement for the sale of its life insurance business to Resolution Life entailing $2.5 billion in cash and $500 million equity interest representing about 20 per cent of Resolution Life.
It said a new Australian-domiciled holding Resolution-controlled holding company would become the owner of the Australia and New Zealand insurance businesses.
The company declared a loss attributable to shareholders for the half-year ended 30 June of $2,292 million, leaving the company an underlying profit for the half of $309 million.
AMP also announced that its Chief Financial Officer designate, John Patrick Moorhead had decided to leave the business and that the current AMP deputy chief financial officer, James Georgeson, had been appointed in an acting capacity.
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