Resolution Life – which in July 2020 acquired AMP Life from AMP Limited to set up Resolution Life Australasia – is now buying AMP’s remaining minority equity interest in the latter to seal full ownership.
“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,” said Resolution Life Australasia and AMP Life chief executive Megan Beer. “Our vision is to be the leading in-force specialist life insurer in Australasia, and we believe we can achieve this by being customer-focussed and data-driven.”
The CEO highlighted: “As an in-force provider, we have a truly unique customer proposition – it means we are focussed 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.”
Read more: AMP seals sale of life insurance business
The minority stake in Resolution Life Australasia, which AMP retained when it sold much of AMP Life last year, is being snapped up for $524 million.
“We have already achieved so much,” added Beer, “and the business is performing well. By acquiring the remaining interest… we now have full ownership and control over our future.”
Subject to regulatory approval, the equity purchase is expected to complete in the first half of next year. It was noted that the new deal includes settlement of a number of warranty & indemnity claims with AMP. Additionally, all transitional service arrangements are being progressively wound up, with conclusion slated for middle of 2022.
With operations in Bermuda, the UK, the US, Australia, and New Zealand, Resolution Life provides services to approximately 2.5 million policyholders. The group has significant capital to deploy for future growth transactions, and employs a roster of more than 1,500 people.
