AMP and Resolution Life have agreed to complete the sale of the life insurance business. AMP is set to pay Resolution Life over A$140 million. It has been revealed that post-completion adjustments will be settled. The sale is awaiting the approval of both Australian and New Zealand regulators.
“AMP has cut its final links to the life insurance business in a deal to offload an almost 20 per cent stake in Resolution Life Australasia (RLA).
The sale will, in fact, see AMP pay Resolution over A$140 million after contractual agreements bite into the “total consideration” of A$524 million.
Resolution completed the purchase of the life business last year for about A$3 billion with AMP retaining a 19.13 per cent holding in the business.
In a statement this morning, AMP says: “As part of the divestment agreement, AMP and RLA have also agreed to settle a number of post-completion adjustments and certain claims between the parties, subject to various limitations and exclusions, which has resulted in a net payment of A$141 million to RLA from AMP. AMP had partly provisioned for these items but following the acceleration of this settlement will record an additional one-off expense of approximately A$65 million in FY 21.”
According to the release, the sale – awaiting approval from Australian and NZ regulators – will boost AMP’s “available capital” by A$459 million. Click here to read more
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