Former AMP-owned HHG has sold its life insurance business to UK-based Life Company Investor Group (LCIG) for around $2.5 billion.

LCIG, headed by British entrepreneur Hugh Osmond, raised its bid by just over $100 million to beat an offer by Europe-based Resolution Life.

Resolution Life was set up last year to buy insurers that have stopped selling new policies, with the aim of merging them.