AMP life insurance sale still on track

In a statement to ASX, AMP re-iterated that, under the terms of the agreement, Resolution Life assumes the risks and profit impacts from 1 July 2018.

However, AMP remains responsible for the operations and capital management of these businesses until the sale completes.

“The $105 million operating loss for the sold businesses in 2H18 reflects approximately $180 million of capitalised losses from AMP’s best estimate assumption changes and approximately $50 million of experience losses,” AMP said.

“Therefore, AMP is required to reserve approximately $100 million of capital until completion.”

AMP noted its total business unit operating earnings in 2H18 are expected to be approximately $220 million.

It said this comprises around $325 million from the retained businesses (Australian wealth management, AMP Capital, AMP Bank and New Zealand wealth management and advice) and a net operating loss of around $105 million from the businesses subject to completion of the agreement with Resolution Life.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].