AMP has agreed to sell its near-20% stake in Resolution Life Australasia, with the transaction expected to complete in the first-half of next year, subject to regulatory approvals in Australia and New Zealand.

It will receive about $524 million from Resolution Life, the global insurer that acquired AMP Life in July last year for $3 billion and set up Resolution Life Australasia as a holding company for the business.

The $3 billion includes AMP’s minority equity interest in the holding company.

Resolution Life will take full control of the holding company once the transaction is approved.

The sale of the 19.13% equity stake will complete AMP’s exit from its former life insurance and mature business, the business said.

“This divestment brings to a close our long and proud involvement in life insurance in Australia and New Zealand,” CEO Alexis George said.

“It enables us to realise capital to further strengthen our balance sheet ahead of our demerger and continue supporting our businesses.

“The separation of our businesses is progressing well and will continue until mid-next year as planned.”

Ms George says the business will continue to provide transitional services to Resolution Life Australasia as agreed, and will have a shared customer and adviser connection into the future.

Resolution Life Australasia CEO Megan Beer, who is also AMP Life CEO, says the business is well positioned for growth in Australia and New Zealand.

“This acquisition represents the next phase of Resolution Life’s Australasian journey as we position our platform for future growth and rebrand AMP Life to Resolution Life,” she said. “We have already achieved so much and the business is performing well.

“By acquiring the remaining interest in AMP Life we now have full ownership and control over our future.”

The acquisition includes settlement of a number of warranty & indemnity claims with AMP.