AMP Limited will divest its 19.13% equity interest in Resolution Life Australasia (RLA) for $524 million, completing the firm’s exit from its former life insurance and mature business, AMP Life.
AMP Life was sold to Resolution Life in 2020 for $3 billion including the equity interest.
An AMP announcement said the divestment was agreed to ahead of the expiry of the 18-month standstill period agreed as part of the 2020 sale. The divestment was expected to complete during the first half of 2022, subject to regulatory approvals.
AMP chief executive, Alexis George said: “This divestment brings to a close our long and proud involvement in life insurance in Australia and New Zealand. It enables us to realise capital to further strengthen our balance sheet ahead of our demerger and continue supporting our businesses.
“The separation of our businesses is progressing well and will continue until mid-next year as planned. We will continue to provide transitional services to RLA, as agreed, and will have a shared customer and adviser connection into the future.”
AMP and Resolution Life had agreed to settle post-completion adjustments and certain claims between the parties, subject to various limitations and exclusions, which resulted in a net payment of $141 million to RLA from AMP. AMP partly provisioned for these items but following the acceleration of this settlement will record an additional one-off expense of approximately $65 million in FY21.
AMP noted the divestment would strengthen its available capital by around $459 million and this would provide flexibility ahead of its planned demerger of AMP Capital’s private markets business in the first half of 2022.
Comments
Now an even bigger bucket of shite!
Great to see this divestment.
Keep going AMP and hopefully you will disappear into historical records.
I think AMP did good things for much of its time but surely the last 10 to 20 years have seen it well past it’s useful life.
RIP AMP
Having just spent something like $200m on the share buy back, and also maybe a really big chunk in the tens of millions on redundancies (as they have way too many useless and overpaid people), it will be interesting to read the next financial statements before the demerger.
For months now any kind of adviser assistance has been non existent I have been trying to sort some basic stuff out for clients like reduction quotes that take weeks if at all to materialise??
From what has happened so far in the marriage of so called convenience Resolution life is just as bad
Good bye and good riddance
And to make matters worse, even our existing clients on claim now have to refill in all sorts of 'authority letters' before we can continue to get any info out of Resolution Life to figure out where the hell their claim payments are, or sort out anything else for our clients! What a nightmare!
Your lucky they are paying the claim?? I have two about 1 week from being referred to AFCA
I don't trust financial institutions with 3-letter names.
Haha classic…. They all do.
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