AMP will complete the sale of its life business to Resolution Life as planned on June 30, Chairman David Murray said on Friday in his AGM address to shareholders.

He says the divestment “marks a strategic shift” for the financial services provider as it looks to the future focusing primarily on wealth management, banking and investment management.

“We strongly believe the sale of AMP Life delivers the best outcomes for shareholders, policyholders and the business,” Mr Murray said, adding the deal “will be a key step in our transformation strategy.”

He says the Australian Prudential Regulation Authority has approved the transfer of MySuper accounts from the life business back to AMP. It is one of many regulatory hurdles that must be met before the June 30 deadline.

Engagement with the Reserve Bank of New Zealand is still going on. The deal has already secured approval from the China Banking and Insurance Regulatory Commission.

“We are satisfied with the progress being made, and again reiterate that we remain on track to complete the transaction by June 30,” Mr Murray said.

As part of the revised sale agreement last August, AMP will receive $2.5 billion in cash and $500 million in equity interest in a new holding company that will own AMP Life. The equity interest will give AMP about a 20% stake in Resolution Life Australia.

Surplus proceeds from the life sale will be used to fund AMP’s new strategy to grow its banking, wealth management and investment management arms, Mr Murray said.

“Beyond this, AMP will assess all capital management options with the intent of returning the excess above target surplus to shareholders subject to unforeseen circumstances.

“As you would expect, the board will consider current economic and business conditions as it assesses any use of the proceeds from the sale.”

Mr Murray also provided an update on the client remediation program, which is on track for completion next year.

He says AMP’s capital position remains strong, holding about $2.5 billion above the minimum regulatory requirements at the end of last year.

AMP reported an overall net loss of $2.5 billion last year but on an underlying basis, the business made a $464 million profit. The life business posted an operating loss of $21 million.