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  • Market update for the 6-month period ended 30 June 2021

Business update

AMP Life

AMP Life continued to deliver a stable financial result for the 6 months to 30 June 2021 while substantially progressing the separation of the business from the AMP Limited group and the execution of transformation initiatives.

AMP Life reported a statutory profit of A$113 million1 for the 6 months ended 30 June 2021 and in September 2021 declared a dividend of A$129 million relating to 1H21.

At 30 June 2021 AMP Life’s capital base of A$2,715 million was A$1,623 million in excess of the Prescribed Capital Amount of A$1,092 million which represents a Capital Adequacy Multiple of 249%.

Resolution Life Group

Resolution Life Group has raised almost US$5 billion of equity and continues to actively seek out further acquisition opportunities both within Australia and New Zealand and globally.

On 3 November 2021, Resolution Life Group announced the acquisition of AMP Limited’s remaining equity stake in Resolution Life NOHC Pty Ltd (the holding company of the AMP Life business)

On the 30 September 2021 Resolution Life Group announced the reinsurance of 80% of the liabilities of Allianz Suisse’s Traditional Individual Life Business.

On the 17 September 2021 Resolution Life Group announced the completion of its acquisition of Lincoln National Life Insurance Company’s Bank owned / corporate owned life insurance business alongside a smaller component of universal life business.

Key metrics – AMP Life

 1H212H20Change 
Operating profitA$112mA$127m(A$63m)Down 12%
Investment earningsA$1m(A$29m)A$30mlarge increase
Statutory profitA$113mA$98mA$15mUp 15%
Net assetsA$2,241mA$2,202mA$39mUp 2%
Capital baseA$2,715mA$2,598mA$117mUp 4%
Prescribed Capital AmountA$1,092mA$1,096m(A$4m)Down <1%
Capital adequacy multiple249%237% Up 12%
Superannuation & Investments AUM2A$24.0bA$24.5b(A$0.5b)Down 2%
Wealth Protection API2A$1,707mA$1,733mA$26mDown 2%

 

Credit ratings

 Rating AgencyRatingOutlookLast review date
AMP Life Insurance Financial Strength RatingMoody’sA3Negative30 September 2020
AMP Life Issuer Credit Rating and Financial Strength RatingS&PA-Stable30 August 2021
AMP Tier 2 Subordinated NotesMoody’sBaa2(hyb) 8 December 2020

 

AMP Life P&L

YTD

30 June 2021

$m

YTD

31 December 2020

$m

Life insurance contract related revenue11,2122,564
Interest income, dividends and distributions and net gains and losses at fair value through profit or loss833(5,079)
Fee revenue44372
Life insurance contract claims expenses2(1,352)(3,064)
Finance costs(6)(11)
Fee and commission expenses(90)(328)
Other operating expenses(162)(445)
  - life insurance contracts122356
  - investment contracts(401)5,631
Income tax (expense) credit(87)238
Profit for the period113234

 

include life insurance claims recovered from reinsurers

2 include life insurance contract premiums ceded to reinsurers

 

AMP Life Balance Sheet

YTD

30 June 2021

$m

YTD

31 December 2020

$m

ASSETS  
Cash and cash equivalents197158
Receivables and prepayments691656
Investment in financials assets29,73930,177
Intangibles6565
Current tax assets26-
Deferred tax assets490444
TOTAL ASSETS31,20931,499
LIABILITIES  
Payables690759
Interest-bearing liabilities1150
Deferred tax liabilities9831,008
Provisions8186
Other financial liabilities7376
Investment contract liabilities4,6314,476
Insurance contract liabilities22,19922,530
Subordinated Debt300300
TOTAL LIABILITIES28,96829,284
   
NET ASSETS2,2412,215
EQUITY  
Contributed equity1,6321,632
Reserve(66)(64)
Retained earnings675634
TOTAL EQUITY ATTRIBUTED TO SHAREHOLDERS2,2412,202

 

Audited Financial Report

This update should be read in conjunction with AMP Life Limited’s audited financial report for the year ended 31 December 2020 which is available at amplife.com.au and amplife.co.nz.

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@secnewgate.com.au

or

Matthew Jackson
Matthew.jackson@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 Resolution Life 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. 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.