In a release made in conjunction with the Australian Stock Exchange this morning, AMP Ltd states "...it has agreed the divestment of its 19.13% equity interest in Resolution Life Australasia (RLA) for a consideration of AUD$524 million to Resolution Life Group (RLG)".

“This divestment brings to a close our long and proud involvement in life insurance in Australia and New Zealand," AMP chief executive Alexis George said.

The divestment remains subject to regulatory approvals in Australia and New Zealand.

"The sale of the RLA holding will complete AMP’s exit from its former life insurance and mature business, AMP Life, which it sold to Resolution Life in 2020 for a total consideration of A$3 billion including the equity interest in RLA."

The sale has been agreed ahead of the expiry of the 18-month standstill period agreed as part of the 2020 sale and values the RLA stake at its carrying value in AMP’s accounts as at June 30, 2021.

As part of the divestment agreement, AMP and RLA have also agreed to settle several post-completion adjustments and certain claims between the parties, subject to various limitations and exclusions, which has resulted in a net payment of A$141 million to RLA from AMP.

According to the statement, the divestment will strengthen AMP’s available capital by approximately AUD$459 million, providing further flexibility ahead of its planned demerger of AMP Capital’s Private Markets business in the first half of next year.

"AMP is continuing to invest in the transformation and growth of its wealth management and bank businesses, as well as providing capital to support the growth of the private markets businesses and to continue actively defending its real estate business.

"It enables us to realise capital to further strengthen our balance sheet ahead of our demerger and continue supporting our businesses," George said.

“The separation of our businesses is progressing well and will continue until mid-next year as planned. We will continue to provide transitional services to RLA, as agreed, and will have a shared customer and adviser connection into the future.”