AMP Life sale halted, dividend scrapped

17 July, 2019, 18:33 | Author: Regina Silva
  • AMP is an Australian financial services company. This is its office in Melbourne

AMP said the rejection was disappointing as the sale of AMP life was a key element of AMP's strategy.

Many changes had been made to the AMP business in expectation of the sale, and Hutchinson said he expected it would proceed either with new terms with Resolution Life, or a new buyer.

AMP shares plunged as much as 8.8% in early Sydney trading, hitting a record low of A$1.96.

In considering the application, Reserve Bank Deputy Governor Geoff Bascand said the bank had tried to maintain a focus on the interest of policyholders while observing regulatory requirements.

"As a result, Resolution Life does not expect RBNZ to approve an application that would satisfy the condition", it told AMP.

Nonetheless, AMP said it was now working with Resolution Life to find a solution.

The 170-year-old company announced on Monday morning its proposed deal with London-based Resolution Life was on the rocks following an intervention by the Reserve Bank of New Zealand.

"AMP believes that this reflects RBNZ's position and that addressing these requirements would adversely impact the commercial return of the sale for both AMP and Resolution Life", AMP said.

In rare rebuke, dozens of Republicans hit Trump over 'racist' tweets
Ayanna Pressley (D-Mass.), Ilhan Omar (D-Minn.), and Alexandria Ocasio-Cortez (D-N.Y.) listen during a news conference at the U.S. Trump's approval rating plunged after the 2017 comments. "Republicans should not show "weakness" and fall into their trap".

Wage growth at highest rate since 2008
The unemployment rate is officially 3.8 per cent, the joint-lowest since January of 1975. Part-time working also showed an increase of 107,000 on the year to reach 8.66 million.

Rams players who deserve higher ratings in 'Madden NFL 20'
Giving every player in the league an accurate rating every year is no easy task, but EA Sports generally do a good job with this. Eric Ebron led all tight ends with 14 touchdowns last season, then added another in the playoffs.

However, AMP indicated it would have no choice but to hold on to its life business if the right offer failed to emerge.

A report by the two New Zealand life insurance industry regulators, the Financial Markets Authority and RBNZ, released in January this year made a number of damning conclusions about the sector, including that it is vulnerable to misconduct, is ignoring whether its products are suitable for customers and is slow to make changes.

"This will require negotiation of new terms and is not certain", AMP said.

AMP said that since June 2018, its "best estimate" assumptions would have about a $400 million impact, and government legislation to stop people from paying for unnecessary life through their super would have a $300 million impact.

Others described the probable cancellation as an accidental win for AMP given that analysts had seen the sale price as too cheap.

Shares AMP took a dive when the company first announced the sale of Life in October past year for $3.3 billion, including $1.9 billion cash.

If a revised deal can't be reached, AMP intends to retain and manage the unit as a specialist life insurance and mature business.

AMP pointed out that 'given the uncertainty around the AMP Life transaction, the AMP Board expects to continue its prudent approach to capital management and anticipates that an interim dividend will not be paid for 1H 19'.



Khan claims Pacquiao fight agreed for November 8 in Riyadh
Manny Pacquiao's team have denied reports a deal has been struck to fight Amir Khan after the Brit claimed contracts had been signed for the pair to face off in Saudi Arabia later this year.

European Union 'should offer to evacuate migrants trapped in Libyan detention centres'
The attack was described as a "continuation of the crimes committed by Haftar forces against medics, ambulances and hospitals". Libya has been struggling to undergo a transitional period amid chaos since the fall of former leader Muammar Gaddafi in 2011.

What is FaceApp's AI ageing filter, and how do you use it?
Some have questioned why the app, which has been out for years, suddenly went viral all over again seemingly overnight. While there's as yet no evidence to support these claims, some other concerns are less far fetched.

Canadian citizen detained in China amid diplomatic tensions
The men, Michael Kovrig and Michael Spavor, have since been charged with espionage. Over the past six months, China has ratcheted up the pressure since Ms.

Super Monkey Ball: Banana Blitz HD Launches On Switch In October
The last official release was the PS Vita entry Banana Splitz back in 2012, but you can't keep a good monkey down. The pirate landscape in particular is one that appears in Banana Blitz , so it looks like that's genuine.

Vape company JUUL's boss apologises to parents
Rite Aid stopped selling e-cigarettes altogether, while Walmart has stopped selling dessert-flavored vaping products. Burns said Juul's electronic products help smokers wean themselves off normal cigarettes.

Lashana Lynch Makes History as First Black Female Bond
The new Bond movie, known for now as Bond 25 , is currently filming in London and is expected to be released in April 2020. Multiple sources maintain the fictional character M will introduce the new Bond in one of the pivotal opening scenes.

United Kingdom : inflation remains at 2.0% in June over one year
The general rule-of-thumb is that a currency tends to fall when its issuing central bank cuts, or signals it intends to cut, interest rates.

AI solves Rubik's cube in under a second
But once algorithm was merely programmed to solve the puzzle, researchers were left with a limited understanding of how it did so. Since its invention by a Hungarian architect in 1974, the Rubik's Cube has furrowed the brows of many who have tried to solve it.

Daniel Bryans Big Announcement Doesnt Happen On Smackdown Live
This comes after Asuka & Sane defeated The IIconics in a non-title match in Tokyo, Japan in late June to earn a future title shot. WWE Women's Tag Team Champions The IIConics will defend their titles against The Kabuki Warriors ( Kairi Sane & Asuka ).