Negative claims experience and capitalised losses led AMP to record a $3 million operating loss last year for the life businesses it has sold to Resolution Life.

AMP CEO Francesco De Ferrari says this year will be transitional as AMP prioritises the complex legal separation from its life businesses, compensates customers and strengthens its risk management, governance and controls.

The sale of AMP Life is necessary given the volatility and capital intensity of the business, he says.

The group announced the life sale last October amid deteriorating profitability. It will be completed in the second half of the year.

AMP says reputational damage from the Hayne royal commission has cost it nearly $4 billion in cash outflows as investors and superannuation fund members pull out. Profit plummeted to just $28 million last financial year, compared with $848 million the previous year.

Compensation over the fee-for-no-service scandal and subdued performance in wealth protection were responsible for the poor result.