Resolution Life, an international life insurance group, has reached an agreement to acquire AMP Limited’s minority equity stake in Resolution Life Australasia for AUD 524 million.
The life insurer entered Australasia via the acquisition of AMP Life from AMP Limited. Under the original agreement, AMP retained a minority equity interest in Resolution Life Australasia.
Now, for a total consideration of AUD 524 million, Resolution Life has secured full ownership of AMP Life, which represents the next phase of the Resolution Life Australasia journey.
The purchase, which remains subject to regulatory approval and expected to close in H1 2022, includes settlement of numerous warranty & indemnity claims with AMP. All transitional service arrangements with AMP are being progressively wound up and will be concluded by the middle of next year.
Megan Beer, Chief Executive Officer (CEO) of AMP Life and CEO of Resolution Life Australasia, commented: “This acquisition represents the next phase of Resolution Life’s Australasian journey as we position our platform for future growth and rebrand AMP Life to Resolution Life.
“Our vision is to be the leading in-force specialist life insurer in Australasia and we believe we can achieve this by being customer focused and data driven. As an in-force provider we have a truly unique customer proposition – it means we are focused only on serving our existing customers and adapting our offering to specifically meet their needs.
“We are well positioned for growth in the Australian and New Zealand markets through managing our customers’ existing policies as their needs change, transforming our business and by continuing to adopt a disciplined approach to acquisitions.
“We have already achieved so much and the business is performing well. By acquiring the remaining interest in AMP Life we now have full ownership and control over our future.”
Since join Resolution Life, the new Australasian leadership team has been dedicated on separating from AMP and transforming the business to become data driven and to introduce modern technology and digital offerings.
Since the firm’s initial acquisition from AMP Life in 2020, Resolution Life has acquired Voya Financial’s individual life in-force business, signed a $9.4 billion reinsurance transaction between its insurance subsidiary, Security Life of Denver Insurance Company (SLD) and The Lincoln National Life Insurance Company, and witnessed its commitments reach $5 billion after raising an additional $1.6 billion of capital.
