AMP pulls out of UK talks
Leading Australian insurer, AMP has pulled out of talks to buy troubled European mutual life assurer Equitable Life.
AMP's decision comes within days of withdrawal from the bidding by Aegon UK, the British arm of the Netherlands-based insurer - the only other company known to be interested in buying all of Equitable's assets, according to online FinancialTimes newspaper in the UK.
The newspaper states that AMP was unable to reach an agreement on price, and Equitable refused to grant it exclusive negotiating status.
The mutual life assurer closed its doors to new business last month after Prudential, a rival life assurer, pulled out of the first round of bidding.
AMP's withdrawal will add to the concerns of Equitable's 1m-plus with-profits policyholders, and could increase the rate of withdrawals from its life fund, causing further financial strain.
Last week Equitable revealed 3,558 policyholders had left since it closed to new business, withdrawing 240 million pounds - less than 1 per cent of the life fund. Surrender requests were up fourfold, averaging 50 million pounds a week, compared with an average of 12 million a week for the first 11 months in 2000.
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