We were right to sell AMP Life says Murray

3 May 2019
| By Mike |
image
image
expand image

AMP Limited’s financial results and the actions of other owners of life insurance businesses have validated the company’s decision to sell its life insurance business to Resolution Life, according to AMP chairman, David Murray.

Murray used his address to the AMP Limited annual general meeting to defend the much-criticised sale decision stating that since the sale agreement in October “our financial results have reinforced that AMP is no the best owner of a life insurance business with higher capital requirements and earnings volatility”.

“Indeed, the recent sale of many major life insurance groups in Australia are also attributable to these factors,” Murray said.

“There has been some criticism of the transaction with Resolution Life,” he said. “As a Board we respect differing viewpoints, but we are bound to act in the best interests of the company and all shareholders, rather than satisfy the particular agenda of a view.”

“Life insurance is a very long-term business. Given we were faced with deteriorating prospects, a sale was the best option when considering the interests of the company over the long-term,” Murray said.

Elsewhere in his AGM address, Murray foreshadowed that AMP chief executive, Francesco De Ferrari would outline his position on the future of AMP at around the time of the company’s interim financial results in August.

“We expect by then to have a line of sight on completion of the sale transaction and clarity of relevant legislation post the federal election,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago