Business update
AMP Life
AMP Life reported a statutory profit of A$234 million for the year ended 31 December 2020 and in March 2021 declared a dividend of A$71 million relating to 2H20. The business has remained resilient in 2H20 during the COVID pandemic, generating a statutory profit for the second half of A$98m.
In December 2020 AMP Life successfully issued A$300 million of Tier 2 subordinated notes and redeemed A$305 million of AT1 notes previously on issue.
At 31 December 2020 AMP Life’s capital base of A$2,598 million was A$1,502 million in excess of the Prescribed Capital Amount of A$1,096m which represents a Capital Adequacy Multiple of 237%.
During 2H20, following the completion of the sale of AMP Life to the Resolution Life Group, the Australasian platform, including AMP Life, has made significant progress on implementing its platform transformation program including:
- Implementation of Enterprise Agility as a way of working across the platform
- Implementation of pricing increases to AMP Life’s Australian retail Wealth Protection products
- Establishment of the NZ Asset Trust as required by AMP Life’s NZ branch licence conditions
- On plan progress of the separation of systems and processes from AMP
Resolution Life Group
On 4 January 2021 Resolution Life Group announced the completion of its acquisition of Voya Financial Inc.’s individual life in-force business in the USA. Voya transferred approximately 350 employees, together with the assets and systems used to manage the business. On completion more than US$25 billion of assets were added to the Resolution Life balance sheet and it assumes responsibility for the administration of the acquired business.
Resolution Life Group has equity capital of US$3.1billion and AUM of US$56.6 billion globally.
Resolution Life Group continues to actively seek out further acquisition opportunities both within Australia and New Zealand and globally.
Key metrics – AMP Life
| 2H20 | 1H20 | Change | |
| Operating profit2 | A$127m | A$63m1 | Up 102% |
| Investment earnings2 | (A$29m) | A$69m1 | Large decrease |
| Statutory profit | A$98m | A$132m1 | Down 26% |
| Net assets | A$2,202m | A$2,418m | Down 9% |
| Capital base | A$2,598m | A$2,413m | Up 8% |
| Prescribed Capital Amount | A$1,096m | A$1,018m | Up 8% |
| Capital adequacy multiple | 237% | 237% | Unchanged |
| Superannuation & Investments AUM2 | A$24.5b | A$25.2b | Down 3% |
| Wealth Protection API2 | A$1,733m | A$1,725m | Up <1% |
Statutory profit reduced by A$34 million in 2H20 relative to 1H20. Lapse and claims experience was positive in 2H20, although lower than 1H20 which included a significant one-off positive in relation to lapses arising from the implementation of Putting Members Interests First legislation being better than expected. Capitalised losses recognised at 1H20 due to strengthening of assumptions predominately due to COVID were partially reversed in 2H20 due to the implementation of pricing changes in the Australian Retail Wealth Protection business. Investment earnings experience was negative due to the implied market valuation of inflation linked liabilities.
Credit ratings
AMP Life’s credit ratings are as follows:
| Rating Agency | Rating | Outlook | Last review date | |
| AMP Life Insurance Financial Strength Rating | Moody’s | A3 | Negative | 30 September 2020 |
| AMP Life Issuer Credit Rating and Financial Strength Rating | S&P | A- | Negative | 27 August 2020 |
| AMP Tier 2 Subordinated Notes | Moody’s | Baa2 (hyb) | 8 December 2020 |
1Presented on an unaudited pro-forma basis to remove the impact of separation from AMP and profits for businesses transferred out of AMP Life prior to the sale of AMP Life to the Resolution Life Group.
2Unaudited [1]
Audited Financial Report
AMP Life Limited’s audited financial report for the year ended 31 December 2020 has been finalised and will be made 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@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 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.
