Australia-based financial services company AMP has agreed to divest its 19.13% equity interest in Resolution Life Australasia (RLA).

The minority stake will be acquired by the parent company Resolution Life for $389.87m (A$524m).

The move will mark AMP’s exit from the life insurance business.

Notably, Resolution Life acquired AMP’s life insurance and mature business AMP Life last year for A$3bn. At that time, AMP retained a minority stake in RLA.

As agreed, AMP and RLA will also settle other post-completion adjustments and certain claims between them. These adjustments will require AMP to make a net payment of A$141m to RLA.

The divestment will bolster the Austrian company’s available capital by approximately A$459m boosting its flexibility.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

AMP CEO Alexis George commented: “This divestment brings to a close our long and proud involvement in life insurance in Australia and New Zealand. It enables us to realise capital to further strengthen our balance sheet ahead of our demerger and continue supporting our businesses.

“The separation of our businesses is progressing well and will continue until mid-next year as planned. We will continue to provide transitional services to RLA, as agreed, and will have a shared customer and adviser connection into the future.”

The deal is expected to close in the first half of 2022, subject to regulatory approvals in Australia and New Zealand.

Earlier this year, Resolution Life raised an additional $1.6bn in capital to support growth.