Financial services and insurance giant AMP has neither confirmed nor denied speculation that it is interested in acquiring assets of UK insurer, Equitable Life.
The “no comment” stance adopted by AMP was made in response to questions from the media regarding a report in The Financial Times in the UK that AMP was among a list of at least two companies which could emerge as potential bidders for the troubled British insurer.
In the report, AMP was described as having “not formulated any firm proposals”, while a host of interested parties including GE Capital, Eureko, CGNU and Prudential have since been ruled out of the race.
Insurance commentators have said that despite AMP’s insistence that it has not been interested in acquisitions, and has rather pursued consolidation of its business, a purchase in the UK would be the next step for the company to expand its British operations.
The reason for such a move is that the industry is consolidating in the UK and AMP would have to act in some form to avoid being left behind in a market that is rapidly growing and changing.
The other potential bidder is Aegon UK, which is the British arm of the Dutch insurer. Aegon appears on the verge of making a bid for Equitable Life, according to the report in the Financial Times. If AMP really is interested in the acquisition, it will have to move quickly.
Equitable Life, which has over one million customers, opened the door to potential buyers last July after the House of Lords ruled that it had to honour guaranteed pension annuities which had been set up over 31 years to 1988.
