AMP Limited has completed the sale of its life insurance business to Resolution Life for $3 billion.
The company confirmed completion of the transaction to the Australian Securities Exchange (ASX) today noting that the total sale proceeds comprised of $2.5 billion in cash and $500 million equity in Resolution Life Australia.
It said the final cash proceeds from the sale were subject to a number of post-completion adjustments, but that AMP expected the net proceeds to increase AMP’s capital in excess of garget surplus by approximately $1.1 billion.
The ASX announcement said the separation of AMP Life would significantly simplify AMP’s group structure with the internal separation process including the transfer of approximately $55 billion of client funds via several successor fund transfers.
It said that in addition to its residual 20% holding in Resolution Life Australia, AMP would continue to provide technology and administrative services to AMP Life for a two-year period.
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