🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

UPDATE 1-Australia's AMP to sell wealth protection and mature units for A$3.3 bln

Published 25/10/2018, 08:36 am
© Reuters.  UPDATE 1-Australia's AMP to sell wealth protection and mature units for A$3.3 bln
SRENH
-
AMP
-

(Adds details on deal, background on investigation)

Oct 25 (Reuters) - Australia's AMP Ltd AMP.AX said on Thursday it would sell its Australian and New Zealand wealth protection and mature businesses to London-based insurance firm Resolution Life for A$3.3 billion ($2.33 billion).

The wealth manager, which came under intense scrutiny from an independent investigation into the country's financial sector for wrongdoing earlier this year, also said it was also contemplating an initial public offering for its New Zealand wealth management and advice businesses in 2019.

The sale value of its Australia and New Zealand wealth protection and mature businesses would amount to A$1.9 billion in cash, with a non-cash component making up for the rest.

The company said it expected to monetise the non-cash consideration over time, without putting a timeline on it.

AMP said it expected the sale to close in the second half of fiscal 2019.

Also, AMP said it has entered into a reinsurance agreement with Zurich-based insurance firm Swiss Re SRENH.S for the New Zealand retail wealth protection portfolio that is expected to release up to A$150 million of capital, the company said.

In August, AMP booked its worst first-half profit in 15 years as it set aside cash to compensate customers it sold bad advice, and said that people were still withdrawing money amid a misconduct inquiry. ($1 = 1.4164 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.