Australian wealth giant AMP has announced that it would sell its life insurance business to London-based Resolution Life at revised terms for $3 billion.

The revised deal, subject to regulatory approvals in Australia, New Zealand, and China, comprised a $2.5 billion cash component and a $500 million (20%) equity interest in Resolution Life Australia, a new Australian-based, Resolution Life-controlled holding company that will become the owner of AMP Life.

Read more: Planned $3.3 billion sale of AMP’s life unit “unlikely” to proceed

The deal is expected to be completed in the first half of next year.

AMP said the revised transaction terms were assessed by its board against a range of alternative options, including retention, demerger of AMP Life, and the separation and sale of individual AMP Life business units.

“The board considers that the sale of AMP Life delivers the best outcome for policyholders, the company and its shareholders,” AMP said. “The board believes the agreement represents a fair valuation, given the significant impact of the Protecting Your Super legislation, the impact of best estimate assumptions since July 01, 2018, and the current legislative and regulatory environment. The sale also delivers a significantly higher cash consideration.”