AMP’s life insurance business posted an operating loss of $21 million last year, weighed by changes to retirement income rules and structural challenges in the wealth protection industry.

Protecting Your Super legislation, as well as new assumptions in Australian wealth protection, lowered profit margins and led to capitalised losses of $243 million, AMP said.

AMP adjusted its expense projections for AMP Life as the division transitions to a standalone business ahead of its sale to Resolution Life, which is expected to be complete by June 30.

“Resolution Life will be on-risk for all experience and lapse losses from July 1 2018 until completion, and is entitled to all AMP Life net earnings during that period,” AMP said.

After $2.35 billion in goodwill writedowns in Australian wealth management and AMP Life in the first half, an additional $55 million was written down in the second half. That reflected further reductions in the value of client registers and associated loan impairments, AMP said.

Of the total $2.4 billion in writedowns for the full year, $459 million related to the life insurance business.

AMP Ltd, which includes wealth and financial advice operations as well as life insurance, posted a full-year loss of $2.47 billion as management reduced the valuation of large parts of the company to reflect an industry overhaul stemming from the Hayne royal commission.

The hearings led to disclosures of misconduct, including fees for no services rendered, and the departure of the CEO and various board members.