In its annual result yesterday, AMP announced a first-half profit of $445 million, down 15 per cent from its 2015-16 result of $523 million.
AMP also announced the completion of reinsurance deals with Gen Re and Munich Re that will release approximately $500 million of capital from AMP Life.
The deal will reduce the "capital intensity" of AMP's wealth protection business, according to a statement by the firm.
AMP announced a full-year loss of $344 million in February 2017 after it flagged impairments of $668 million within its life insurance business in October 2016.
The company is not the only wealth management company looking to reduce its exposure to life insurance manufacturing.
The Commonwealth Bank announced on Wednesday it is in discussions to sell CommInsure; NAB/MLC sold 80 per cent of its life insurance business to Nippon Life in October 2015; and ANZ is currently exploring options to offload its wealth management business including a potential listing.
The reinsurance deal announced yesterday will see the company enter a new quota share agreement with Gen Re to cover 60 per cent of the NMLA retail portfolio.
It will also see an extension of the existing agreement with Munich Re to cover 60 per cent (up from 50 per cent) of the AMP Life retail portfolio.
There will also be a new "surplus cover agreement" with Gen Re to "assist in risk and volatility in individual claims", as well as a "recapture" of 35 existing reinsurance treaties.
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