AMP Revises Deal with Resolution, Resets Strategy After Big 1st Half Loss

By David Winning

SYDNEY--AMP Ltd. (AMP.AU) said it would raise more capital and restructure a deal to sell its Australian and New Zealand wealth-protection and mature businesses after tumbling to a deep loss in its fiscal first half.

AMP reported a net loss of 2.3 billion Australian dollars (US$1.55 billion) in the six months through June, reflecting impairment charges totaling A$2.35 billion "to address legacy issues and position AMP for the future."

AMP said it had also cut the price of a deal with Resolution Life Group Holdings LP for its AMP life unit and was working with New Zealand's central bank to overcome issues that had torpedoed an earlier agreement worth A$3.3 billion, including A$1.9 billion in cash.

AMP said the revised deal involved a A$2.5 billion cash payment, and a A$500 million equity interest in a new company that would be controlled by Resolution and own the AMP Life business.

That deal is forecast to complete in the first half of next year, prompting AMP to seek to raise A$650 million in additional capital now to fund a new strategy outlined on Thursday. The strategy includes cutting A$300 million in costs and investing up to A$1.3 billion over three years to drive growth.

Write to David Winning at [e-mail]

(END) Dow Jones Newswires

August 07, 2019 18:14 ET (22:14 GMT)

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