amp offloads insurance business in 3 45bn deal

AMP’s acting chief executive Mike Wilkins said the completion of a year-long portfolio review is a “major step forward in reshaping AMP as a simpler, more focused group.”

“The agreement with Resolution Life and our exit from wealth protection and mature delivers important strategic benefits,” Wilkins said.

“It substantially simplifies our portfolio, delivers certainty and frees up capital.”

AMP acknowledged that its latest quarter has been “testing”, with net cash outflows of $1.5 billion in the September quarter.

Customers removed funds from AMP in droves after findings from the royal commission revealed AMP had billed more than 4600 dead people and routinely charged fees for no service.

The royal commission triggered leadership trouble for AMP, claiming the scalps of three board members, chief executive Craig Meller and chairman Catherine Brenner. Former Credit Suisse South East Asia head Francesco De Ferrari was named AMP’s new chief executive officer in August.

“Looking forward, our incoming CEO Francesco De Ferrari has the mandate to transform AMP,” Wilkins said.

“The outcomes from the portfolio review will create greater flexibility as he sets the new strategy for our simplified business portfolio.”

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