Australian financial services company AMP is no longer in the life insurance business after finally completing the sale of AMP Life to Resolution Life – a year and a half after the deal was announced.
In October 2018, AMP revealed it was selling its life business to the UK-based insurance consolidator for A$3.3bn (£1.8bn, $2.2bn, €2bn).
But in July 2019, it all came to a halt when the New Zealand regulator nearly caused the agreement to collapse because Resolution did not meet its criteria and had no presence in the country.
As a result, the UK insurer opened an Australian arm in August 2019 to meet the regulatory requirements for the M&A deal to go ahead.
Now AMP has confirmed its life business was sold for A$3bn, comprising of A$2.5m in cash and A$500m equity interest in Resolution Life Australia.
170 years of life insurance
AMP chief executive Francesco De Ferrari said: “The sale of the life business is a foundational step in our strategic transformation to become a simpler, client-led and growth-oriented organisation.
“The sale is a major milestone for AMP demonstrating our ability to execute complex projects including through the difficulties of covid-19.
“It is also a historic moment as AMP ceases to be a life insurer after 170 years. Our life teams will move to Resolution Life and will continue to support clients who will see no changes in their policy terms or conditions.”
