S&P has maintained AMP’s ratings and expects earnings at AMP Life, which posted a $21 million loss last year, to improve.

A group headline loss of A$2.47 billion was largely due to non-cash goodwill impairment charges and was fully captured in current ratings, the ratings agency says.

“AMP's business base has shown some signs of stabilising,” S&P said.

The group expects the sale of its life division to Resolution Life will be completed June 30. However, AMP Group will hold a 20% equity stake after the divestment.

S&P rates AMP Ltd. BBB+, AMP Life A- and AMP Bank BBB+, with a negative outlook.

“We continue to view downward ratings pressure on AMP group as it transitions to a less diversified and less capital-intensive group with the expected sale of AMP Life this year,” S&P says.