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31 December 2022 Business Update
Resolution Life Australasia reported an after-tax statutory profit of AUD224 million for the full year ended 31 December 2022 and in March 2023 declared a dividend of AUD116 million and a capital return of AUD112 million relating to 2H22 (subject to the Australian Prudential Regulatory Authority (APRA) approval)
The business has remained resilient in 2022, generating a stable profit and capital emergence for shareholders. The 2022 result was driven by the favourable profit margins, particularly on Australian conventional par products and favourable experience on Wealth Protection retail products. These were partially offset by investment losses on shareholder capital due to investment market declines in the first half of the year.
As at 31 December 2022 Resolution Life’s capital base of AUD2,163 million was AUD1,466 million in excess of the Prescribed Capital Amount of AUD697 million which represents a Capital Adequacy Multiple of 310% (pre- FY22 year-end transfers, dividends and/or capital returns and capital injections).
Resolution Life Australasia completes acquisition of Macquarie Life business
On 1 November 2022 Resolution Life Australasia completed the acquisition of the remaining Macquarie Life annuity customers. The Federal Court of Australia approved the scheme for transfer of the Macquarie Life business on 6 October 2022 with all policy holder assets and liabilities transferring to Resolution Life on 1 November 2022. This scheme for transfer included amendments to existing MLL policy terms to allow them to be administered in a consistent manner with existing Resolution Life policies.
Resolution Life Australasia acquisition of AIAA Super and Investments business
Following approval from the Federal Court of Australia on 22 February 2022 AIAA and Resolution Life gave notice of their intention to make an application to the Federal Court of Australia for confirmation of a scheme to transfer the S&I life insurance business of AIAA to Resolution Life. The proposed effective date of the transfer is 1 July 2023. The Federal Court of Australia’s approval for the scheme of transfer is scheduled for 31 May 2023.
Resolution Life Group
In October 2022, Resolution Life and Blackstone announced a strategic partnership to support the continued growth as a leading global life and annuity insurance consolidation business. This partnership solidifies Resolution Life’s position as a leader in the multi-trillion-dollar global life and annuity consolidation market by combining Resolution Life’s global liability management platforms and Blackstone’s insurance asset management capabilities. Resolution Life and Blackstone plan to raise USD3 billion of new equity capital commitments, including a USD500 million strategic investment from Blackstone bringing the company’s overall equity capital base to more than USD8 billion. Closing is subject to regulatory approval and is anticipated to occur in the second half of 2023.
In December 2022, Resolution Life became a signatory to the United Nations-supported Principles for Responsible Investment which demonstrates a commitment to responsible investing while building a more sustainable financial system. As part of our signatory status Resolution Life will continue to develop our Responsible Investment Policy which describes the principles and requirements for responsible investment across all subsidiaries of the Resolution Life Group.
Resolution Life Group continues to actively seek out further acquisition opportunities both within Australia, New Zealand and globally.
Key metrics – Resolution Life Australasia Limited
(in AUD millions)
| 2022 | 2021 | % Change | |
|---|---|---|---|
| Statutory profit 1 | 224 | 222 | 0.9% |
| Net assets 2 | 2,023 | 2,229 | -9.2% |
| Capital base 3 | 2,163 | 2,699 | -19.9% |
| Prescribed Capital Amount 4 | 697 | 956 | -27.1% |
| Capital adequacy multiple | 310% | 282% | 10% |
1. Statutory profits remained stable year-on-year. Current year profit reflects favourable profit margins, particularly on Australian conventional par products, and favourable experience on Wealth Protection retail products. These were partially offset by investment losses on shareholder capital due to investment market declines in the first half of the year. 2. The decrease in net assets was primarily due to a return of capital and dividends paid during the year. 3. Similar drivers to net assets, however, excludes impact of movement in intangible assets (e.g., deferred acquisition costs). 4. Decrease in the prescribed capital base amount (PCA) is due to capital being released in-line with the run-off of the business over the year. This has also been driven by changes in the estimate assumptions and risk margins, and an increase in the PCA diversification benefits.
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 | 6 September 2022 |
| Resolution Life Australasia Limited Insurer Financial Strength Rating | Fitch | A | STABLE | 19 August 2022 |
| AMP Tier 2 Subordinated Notes | Moody’s | Baa2 (hyb) | STABLE | 24 November 2021 |
In April 2022, Fitch assigned ‘BBB’ ratings to Resolution Life Group Holdings and RLGH Finance Bermuda. The outlook on all ratings is Stable.
Audited Financial Report
Resolution Life Australasia Limited’s audited financial report for the year ended 31 December 2022 has been finalised and is made available here.
Contact details
For investor enquiries, please contact:
Anil Shaw
Assistant Treasurer, Resolution Life Australasia
+61 422 674 081| anil.shaw@resolutionlife.com.au
For any media enquiries, please contact:
Erica Borgelt
erica.borgelt@secnewgate.com.au
Tanya Creighton
Tanya.creighton@secnewgate.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.
