Upon completion of the transaction, the Australia and New Zealand-based AMP is said to become the first foreign player to purchase a stake in a Chinese pension company with three licences allowing end to end services across the country.
AMP chief executive officer Craig Meller said, "This acquisition provides AMP with a strategic foothold in the rapidly growing Enterprise Annuity segment of China’s pension market and also extends our relationship with China Life, a leading global financial services brand.
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"Having had a successful venture in funds management from last year, we look forward to sharing our expertise in corporate superannuation and investment management to help grow China Life Pension Company’s business in a market where we see significant growth potential."
As part of the development, the company will enter into a business cooperation undertaking in order to offer technical support to China Life Pension Company, which is part of China Life Insurance Group and also nominate two directors to the 11 member board of China Life Pension Company.
China Life Insurance Group Chairman Yang Mingsheng said "This marks a new chapter of transformation for China Life in the diversification of its equity base, internationalising its business and making its operations more market-orientated."
The two companies have an existing relationship in form of a Memorandum of Understanding signed in August 2009 strategic cooperation and China Life AMP Asset Management Company, a joint venture formed in September 2013 between AMP Capital and China Life Asset Management Company.
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By GlobalDataAMP plans to fund the proposed acquisition through the existing surplus capital and liquidity facilities and also expects it to reduce the surplus capital over minimum regulatory requirements of the acquirer, AMP Life and consequently AMP Group by approximately AUD$180 million.
