Insurance group AMP has renegotiated the sale price of its life insurance business Resolution Life for AU$3 billion, BusinessDesk reported.
The amount was AU$300 million less than its original price as the Reserve Bank of New Zealand (RBNZ) refused to let Resolution Life continue its operations as a branch and insisted that it should have separate, ring-fenced assets held in New Zealand to benefit policyholders.
However, the new sale agreement specified that AMP has to leave AU$500 million in the life business – making it a shareholder with around 20% of Resolution Life Australia.
AMP and Resolution Life “are continuing to work productively with the Reserve Bank of New Zealand to address their requirements for change in control,” AMP told BusinessDesk.
Read more: Regulator adds uncertainty to AMP Life sale
In October 2018, AMP signed an agreement to sell the Resolution Life for AU$3.3 billion. However, events since then have reduced the life business’s value.
AMP’s New Zealand wealth business has also announced that its underlying operating earnings were steady in the six months ended June.
Blair Vernon, chief executive of the NZ wealth business, confirmed that they are now focused on the “renovation and simplification of our distribution channels and continuing to improve our product and service offering for our clients locally.”
