Changes to our business – information for AMP clients

15 July 2019

Business update

In October 2018, AMP announced it was entering into an agreement to sell its life insurance businesses in Australia and New Zealand to Resolution Life.

We now believe that it’s highly unlikely that the sale of AMP Life to Resolution Life will proceed on its current terms, given the challenges in achieving the necessary regulatory approvals.

For more information, read our media release.

There’s nothing you need to do

It is important to understand that:

  • Terms and conditions of existing life insurance policies will be retained, so there’s nothing you need to do.
  • If you are a member of the AMP KiwiSaver Scheme or hold another AMP investment product, nothing changes.
  • If you have AMP general insurance, there are no changes.

As always, if you have any enquiries or would like to make changes to your policy, AMP KiwiSaver Scheme or investment, we’re ready to assist. If you need to make an insurance claim, we’re standing by to help. If you have lodged an insurance claim, or are currently receiving claim benefits, we will continue to provide you with our full support.

Thank you

We remain committed to providing the best outcomes for you. If you have any other questions, please contact us

 

Personal insurance

Terms and conditions of existing policies will be retained:

  • Life Insurance
  • Income Protection
  • Trauma Cover
  • Disability Cover
  • Other personal insurance products issued by AMP Life (including formerly National Mutual Life Association (NMLA))

General insurance

There are no changes:

  • Home and Contents Insurance
  • Business Insurance
  • Car Insurance
  • Rural Insurance
  • Other General Insurance

KiwiSaver

There are no changes (this includes AMP Essentials).

Investments

There are no changes:

  • AMP Investment Trust
  • WealthView
  • New Zealand Retirement Trust & My Super
  • Superannuation Master Trust
  • Personal Superannuation Scheme
  • Savings and Investments Portfolio
  • State Sector Retirement Savings Scheme
  • Personal Managed Funds and Future Lifestyle Plan
  • AMP Retail Superannuation
  • Other AMP investment products

Employer offerings

There are no changes:

  • KiwiSaver for employers
  • NZRT for employers

 

Terms and conditions of existing policies will be retained:

  • Business Risk Protection Plan
  • Businesstrack
  • Other business insurance products issued by AMP Life (including formerly National Mutual Life Association (NMLA))  

1.     Why has AMP announced that the sale of AMP Life is unlikely to proceed?

The sale of AMP Life to Resolution Life is highly unlikely to proceed on the current terms due to challenges achieving regulatory approvals from the Reserve Bank of New Zealand (RBNZ). AMP believes addressing these regulatory requirements would adversely impact the commercial return of the sale for policyholders. AMP is now working with Resolution Life to determine whether there is a solution that addresses policyholder interests, regulatory requirements and provides certainty of execution.
 
2.     What happens if the sale does not proceed?

If the sale does not go ahead, AMP Life will remain part of AMP and we would continue to operate AMP Life as a specialist life insurance and mature manager. Terms and conditions of existing life insurance policies will be retained, so there’s nothing you need to do. If you are a member of the AMP KiwiSaver Scheme or hold another AMP investment product, nothing changes. If you have AMP general insurance, there are no changes.

3.     Will this impact AMP’s interim dividend?

Given the uncertainty around the AMP Life transaction, the AMP Board expects to continue its prudent approach to capital management and anticipates that an interim dividend will not be paid for 1H 19.

4.     What is wealth protection, mature and wealth management?

Wealth protection includes AMP’s life insurance products, such as Lifetrack and RPP. Mature (or conventional) products include some of our older products – insurance products (some with an investment component) – which have been closed to new business for some time. Wealth management includes AMP’s investment products, such as NZRT and our AMP KiwiSaver Scheme.

5.     Who is Resolution Life?

Resolution Life is an international insurance and reinsurance group whose management has a 15-year track record in providing quality service to in-force insurance customers. Click here for more information on Resolution Life.

6.     Are my funds safe? Is there enough money to pay my insurance policy if I need to make a claim?

We’re ready to help if you need to make a claim and your investments, including the AMP KiwiSaver Scheme, are not affected.

Providing valued and high-quality advice and looking after your financial wellbeing is at the heart of what we do, and that’s what we continue to be focused on every day.

7.     Do I still have an AMP Adviser?

Yes, and your Adviser is ready to help if you have any questions or would like to discuss your products or services.

 

Important information

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The information included in this article is of a general nature and is not a substitute for financial or other professional advice. To the extent that the information constitutes advice, it is class advice only. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. For personal financial advice, we recommend you contact your Adviser or if you don't have an Adviser, contact us on 0800 267 263 and we can put you in touch with one. 

A disclosure statement is available from your Adviser, on request and free of charge.