AMP sheds reinsurance business

insurance amp chief executive

11 December 2007
| By Mike Taylor |
image
image
expand image

Andrew Mohl

AMP Limited has sold its closed reinsurance and general insurance operation Cobalt/Gordian.

The company announced on the Australian Stock Exchange today that the reinsurance and general insurance operation had been sold to the Enstar Group for $585 million, with the sale including both the manager of the business, Cobalt, and the closed book portfolios, including Gordian.

It said that based on a book value at June 30, 2007, AMP would book a profit from the sale of around $83 million.

Under the terms of the sale, Enstar will assume the risks and benefits of the Cobalt/Gordian operations from July 1, 2007, with the final sale proceeds payable to AMP increasing for the period from July 1, 2007, to completion at a rate of around $3.3 million a month.

The company said that the sale represents a complete exit from the business by AMP.

Commenting on the sale, AMP chief executive Andrew Mohl said the company had generated significant value from the runoff of Cobalt/Gordian in the past few years, but it had received attractive terms and conditions from Enstar to facilitate a clean exit from the business.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

1 month 3 weeks ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

2 months ago

Interesting. Would be good to know the details of the StrategyOne deal....

2 months ago

SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positiv...

2 weeks 2 days ago

Original bidder Bain Capital, which saw its first offer rejected in December, has returned with a revised bid for Insignia Financial....

1 week 2 days ago

The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would a...

1 week ago

TOP PERFORMING FUNDS