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Nothing to worry about AMP Life says

AMP Life executive general manager Thérèse Singleton has told advisers there is nothing to worry about with the proposed sale of the business to Resolution Life.

Monday, February 24th 2020, 5:33PM 5 Comments

Good Returns and Newsroom have both carried pieces raising questions about the deal, which impacts 200,000 policyholders directly.

Good Returns Opinion piece can be found here.

Newsroom's feature is here.

Also policyholder Andrew Body has petitioned Parliament raising concerns around the issue. The petition asks that Parliament "urgently review the Insurance (Prudential Supervision) Act 2010 to ensure New Zealand life insurance policyholders (including AMP Life policyholders) are treated fairly and transparently in the sale and operation of life insurance businesses, through seamless supervision by the FMA and RBNZ."

You can see (and sign) the petition here.

Thérèse Singleton message to advisers

You may have seen some media articles late last week about AMP Life and the proposed sale to Resolution Life. It is important to remember that nothing has changed in relation to AMP Life customers since they were last advised of the transaction. AMP Life remains well capitalised and customer promises are being met every day, and this will continue under Resolution Life. AMP Life has legal obligations to ensure that policyholder’s interests are protected, under both Australian and New Zealand law.

The separation of AMP Life is on track for completion by 30 June 2020. We continue to work constructively with regulators, including RBNZ, on receiving approval. We have achieved a key milestone of approval from China (CBIRC).

The transaction has been designed to ensure all policyholders’ existing terms and conditions will be retained. The teams supporting existing AMP Life customers will largely transfer on completion to maintain continuity of service, with operational separation well advanced in both countries.

There is no basis for clients to have concerns around their entitlements under AMP Life policies. The scrutiny being applied to AMP Life by the regulators in Australia and New Zealand as part of the consent process, together with the increased oversight of conduct of insurers in New Zealand through the Culture and Conduct work, should give customers a high level of comfort. This supervision applies to AMP Life regardless of its ownership.

Resolution Life is an international insurance and reinsurance group whose management has a 16-year track record in providing quality service to in-force insurance customers. In addition, customers will benefit from Resolution Life’s deep expertise in managing in-force insurance policies and its commitment to customer service.

AMP Life will continue to be governed by a board, with a majority of independent directors and will be subject to the requirements of both APRA in Australia and RBNZ in New Zealand.

Customers will receive communications from AMP once the deal is confirmed. AMP Limited has regularly updated the market regarding the sale of AMP Life to Resolution Life, and this will continue.

 

Tags: AMP Life

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Comments from our readers

On 1 March 2020 at 2:10 pm ray q said:
Good on the AMP PR spokeswoman. The prof will be in actions not words.
On 2 March 2020 at 10:40 am Tash said:
Yes nothing to worry about but zero product enhancement/modernization and additional rising premiums due to lack of new members. Clients in poor health who cannot move will be hardest hit.
On 2 March 2020 at 6:26 pm jweernink said:
This whole thing is a scam!!

I have been fighting with AMP for a long time and clearly opposed to the sale of my life insurance which I signed with AMP and not Resolution. Time will tell how it pans out but Resolution does not have a good reputation! Every be warned!
On 3 March 2020 at 12:15 pm BayBroker said:
"Nothing to worry about"

Haha who is she trying to convince? Herself, or her customers?

I really do hope the RB veto this deal. If they and the FMA are serious about what's good for the client then they will.

Looking at Resolution's business model, it's just to make money on older books where clients get older and premiums increase. There's next to no benefit for AMP Life clients to this sale.
On 12 March 2020 at 12:01 pm Philosopher said:
I not sure how much comfort an AMP policyowner can take for a track record of 16 years. That's no time at all and no sort of track record in our industry. The communication to policyowners has been appalling. Apparently, the deal has been undertaken with policyowners interests in mind, yet they have never consulted on this deal and are now only going above the line due to media pressure. Don't forget this deal was a massive balls-up first time round due to lack of diligence from both sides and an overwhelming desire to quickly push it through. All focused on the big dollars and policyowners be dammed feels like.

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