AMP has sold its general insurance business in NZ to Royal and Sun Alliance for around $60 million. 

The price includes AMP’s GIO New Zealand and its 50% share in the AA Insurance joint venture with a local motoring organisation. The deal is along similar lines to that struck with Suncorp Metway: AMP has agreed to an exclusive distribution agreement enabling insurance products manufactured by R&SA to be branded and distributed by the financial services giant. 

The sale clears the way for AMP to focus on its expertise in distribution and customer management, CEO Paul Batchelor said.

AMP’s 134 general insurance staff will transfer over to R&SA.

The deal also brings R&SA up to number 2 in NZ’s general insurance rankings. MD Roger Bell said the sale provides his company with “an attractive distribution network with access to a quality adviser network”.