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Resolution Life Australasia Limited 31 December 2021 Business Update

Resolution Life Australasia reported a statutory profit of A$222 million for the year ended 31 December 2021 and in March 2022 declared a dividend of A$93 million and a capital return of $148.2m (subject to APRA approval) relating to 2H21.

The business has remained resilient in 2021 during the COVID pandemic, generating a stable profit and capital emergence for shareholders while continuing its transformation to become a customer obsessed, data driven and digitally enabled business.

As at 31 December 2021 Resolution Life’s capital base of A$2,699million was A$1,743 million in excess of the Prescribed Capital Amount of A$956m which represents a Capital Adequacy Multiple of 282%. 

Resolution Life Australasia acquires AIA Australia’s Superannuation & Investments business

Resolution Life Australasia , in February 2022 announced that it has entered into an agreement with AIA Australia Limited to acquire its Australian Superannuation & Investments business.

The acquisition will deliver significant value and scale benefits and will strengthen Resolution Life Australasia’s position as the largest life insurer by assets in Australasia. It will increase Resolution Life’s funds under management and administration by more than A$8 billion and result in c.162,000 AIA Australia customers joining Resolution Life’s existing 1.1 million Australasian customer base.

Savings, investment and retirement products are a core part of Resolution Life’s portfolio and AIA Australia’s Superannuation & Investments business will complement this existing business. AIA’s Superannuation & Investment business will be fully integrated into Resolution Life’s local business operations where policyholders will benefit from Resolution Life’s dedicated focus on existing customers and significant investment in technology, digital and AI capabilities. 

Resolution Life Group

In November 2021, Resolution Life Group announced that it had agreed to acquire AMP Limited’s remaining 19.1% minority stake in the Resolution Life Australasia business for A$524m. This remains subject to regulatory approval and is expected to complete in 1H22.

In December 2021 Resolution Life Group entered into a reinsurance agreement with Allianz Life. It announced that US$35bn of fixed indexed annuities reinsured from Allianz Life Insurance Company of North America (“Allianz Life”) to Resolution Life’s reinsurance platform, Resolution Re, and Talcott Resolution Insurance Company (“Talcott”), an affiliate of Sixth Street.

  • Resolution Life’s reinsurance platform, Resolution Re, will reinsure US$26bn of fixed indexed annuity reserves from Allianz Life
  • Resolution Re to separately retrocede US$12bn to an affiliate of Talcott
  • Resolution Life Group has now invested c.US$5bn of equity, with c.US$90bn of assets under management, demonstrating its ability to execute scale and complex transactions for global life insurers
  • The second reinsurance agreement with Allianz Life, and is one of three reinsurance transactions announced by Resolution Life in the last six months

Resolution Life Group continues to actively seek out further acquisition opportunities both within Australia, New Zealand and globally.

Key metrics – Resolution Life Australasia
(in AUD millions)

  2021 2020 % Change
Statutory profit 222 234 -5.1%
Net assets 2,229 2,202 1.2%
Capital base 2,699 2,598 3.9%
Prescribed Capital Amount 956 1,096 -12.8%
Capital adequacy multiple 282% 237% 19.0%

 

Credit ratings
Resolution Life Australasia’s credit ratings are as follows:

  Rating Agency Rating Outlook Last review date
Resolution Life Australasia Limited Insurance Financial Strength Rating Moody’s A3 STABLE 24 November 2021
Resolution Life Australasia Limited Issuer Credit Rating and Financial Strength Rating S&P A- STABLE 10 November 2021
AMP Tier 2 Subordinated Notes Moody’s Baa2 (hyb) STABLE 24 November 2021

 

Audited Financial Report

Resolution Life Australasia Limited’s audited financial report for the year ended 31 December 2021 has been finalised and is made available here.

Contact details

For investor enquiries, please contact:
Graham Duff Treasurer & Deputy CFO, Resolution Life Australasia
+61 411 703 429 | graham.duff@resolutionlife.com.au

For any media enquiries, please contact:
Erica Borgelt
erica.borgelt@newgatecomms.com.au

or

Matthew Jackson
Matthew.Jackson@newgatecomms.com.au

What you need to know

Any advice on this website is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), and is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the relevant product disclosure statement and/or policy document, available from Resolution Life at resolutionlife.com.au or by calling 133 731, before making a decision on whether to acquire, or continue to hold, the product.

The Target Market Determinations (TMDs) for our financial products (where applicable) can be found at Target Market Determinations (TMDs). The TMDs describe the key features and attributes of an applicable product that affect whether it is likely to be consistent with the objectives, financial situation and needs of consumers in the target market.

Resolution Life is part of the Resolution Life Group and can be contacted via contact us or by calling the phone number mentioned above.