AMP has sold its life insurance business to Resolution Life for $3 billion, completing a “key priority” in its transformation strategy.
The sale of AMP Life to Resolution Life Australia will “significantly simplify” AMP’s group structure, allowing it to focus on its wealth management platforms and products. The sale comprised $2.5 billion cash and a $500 million equity interest in Resolution.
“The sale of the life business is a foundational step in our strategic transformation to become a simpler, client-led and [growth-oriented] organisation,” said AMP CEO Francesco De Ferrari. “The sale is a major milestone for AMP demonstrating our ability to execute complex projects including through the difficulties of COVID-19.”
AMP will continue to provide technology and administrative services to AMP Life for a two-year period under a transitional services agreement, and customers’ terms and conditions will remain unchanged through the separation.