AMP revives plan to sell life insurance unit

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. 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.