AMP is looking for acquisitions, but it probably won’t be bidding for Suncorp’s life insurance and wealth management assets, according to CEO Craig Dunn.

He told the Trans-Tasman Business Circle last week that AMP is “keen to participate” in the consolidation of the financial services sector.

The financial services giant reportedly has a sizeable war chest available after being outbid for the life insurance and wealth management assets of UK insurer Aviva, which sold its local assets to National Australia Bank last month for $925 million.

Mr Dunn says there will be more mergers and acquisitions in the sector as offshore companies cut back their Australian exposure to focus on their local markets.

While speculation about a split-up of Suncorp assets has been rife, he says it’s unlikely AMP would deal itself in because most of the Queensland-based group’s non-banking financial services assets are focused on life insurance.

Mr Dunn used the speech to warn governments against over-regulating in response to the global financial crisis.

“Let’s not underestimate the strength of the regulatory system we already have in Australia by over-reacting to offshore regulatory moves,” he said.

“New regulation almost always carries unintended consequences, often creating new or higher barriers to entry, stifling innovation, leading to less competition and poorer outcomes for consumers over the longer term, despite the best intentions.”