AMP does a deal with RSA

AMP Limited has done a deal where it has sold the manufacturing side of its general insurance business to Royal & SunAlliance, but will continue to sell the policies.

The $60 million deal covers all AMP's general business, and it includes GIO New Zealand and its 50% stake in a joint venture with AA.

An exclusive distribution agreement has been put in place that will enable general insurance products, manufactured by Royal & SunAlliance, to be branded and distributed by AMP.

The global financial services group made a strategic decision last year to exit its non-core businesses, such as general insurance, so it could concentrate on wealth management.

The New Zealand transaction follows similar ones in Australia with Suncorp Metway and the United Kingdom.

AMP says the deal has no impact on its investment, life insurance or banking businesses in New Zealand.

AMP chief executive Paul Batchelor, says general insurance remains an important part of AMP’s offer to customers.

"This partnership will ensure that AMP continues to focus on its strategy to provide a complete range of value-adding wealth creation and protection services to our customers."

"Creating a partnership that transfers the manufacturing of general insurance products to Royal & SunAlliance, a global insurer with a strategy to grow its general insurance business, means AMP can focus on its expertise in distribution and customer management. We will also benefit from Royal & SunAlliance’s economies of scale and AA- Standard & Poors claims paying ability rating".

Royal & SunAlliance Insurance NZ Managing Director Roger Bell says the partnership provides an attractive distribution channel with access to a quality adviser network and a relationship with a strong and well regarded brand.

Royal & SunAlliance is now the second largest general insurer in New Zealand.

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