AMP Won't Pay Interim Dividend with Life Sale Derailed

   By Robb M. Stewart 
 

MELBOURNE, Australia--Financial services provider AMP Ltd. (AMP.AU) warned Monday it doesn't plan to pay a first-half dividend in anticipation the proposed sale of its Australian and New Zealand wealth-protection and mature businesses won't go ahead.

The Australian company said a deal with Resolution Life Group Holdings LP was highly unlikely to proceed on the terms agreed due to the challenges of meeting conditions set by the Reserve Bank of New Zealand for approval.

AMP said it was working with Resolution Life to determine if there is a solution that would address policyholders' interests and regulatory requirements, but that will require the negotiation of new terms and isn't certain.

As part of a sweeping overhaul unveiled last October, AMP agree to sell its AMP Life unit to Resolution Life for 3.3 billion Australian dollars (US$2.32 billion), including A$1.9 billion in cash.

New Zealand's central bank earlier this month notified AMP that it didn't expect to approve the company's application for approval of the deal.

On Monday, AMP said it currently expected a Level 3 capital surplus above the minimum regulatory requirement for the first half of its financial year, but that given the uncertainty around the AMP Life sale it now didn't anticipate paying an interim dividend.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

July 14, 2019 18:29 ET (22:29 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.