Amp Limited · ASX:AMP
Amp — Merger or Acquisition (October 2018)
11 slides from Amp's merger presentation, Oct 25, 2018
Slide 1: AMP completes portfolio review
AMP completes portfolio review 25 October 2018
Slide 2: Overview
Overview Successful − Successful completion of portfolio review, first announced in February 2018, to realise value of manage for value businesses completion of portfolio review − Outcome of portfolio review includes three components: o Sale of Australian and New Zealand wealth protection and mature
Slide 3: Wealth protection and mature: key transaction elements
Wealth protection and mature: key transaction elements Strong mix of Sale of Australian and New Zealand wealth protection and mature businesses to Resolution Life A$3.3 billion cash and income- Cash A$1.9 billion generating investments AT1 preference shares in AMP Life (issued on transaction complet
Slide 4: Wealth protection and mature: prioritising customers
Wealth protection and mature: prioritising customers Delivering the Partnering with Resolution Life to continue to deliver quality customer service right outcome for – Customers will retain all terms and conditions of existing policies and benefit from Resolution Life management’s customers expertis
Slide 5: New Zealand wealth protection: reinsurance
New Zealand wealth protection: reinsurance New Zealand New Zealand retail wealth protection reinsurance reinsurance to – Binding agreement with Swiss Re for New Zealand retail wealth protection reinsurance expected to release up to release capital A$150 million in regulatory capital to AMP, subject
Slide 6: New Zealand wealth management and advice businesses: IPO
New Zealand wealth management and advice businesses: IPO Intention to New Zealand IPO¹ unlock further – Capital intensive wealth protection business to be divested through Resolution Life transaction value from New Zealand IPO – Intention to seek divestment of New Zealand wealth management and advic
Slide 7: Wealth protection and mature: transaction and reinsurance proceeds
Wealth protection and mature: transaction and reinsurance proceeds A$m 3,450 Provides strategic NZ Reinsurance 1 150 300 500 flexibility for Preference shares 300 growth 160 and/or 320 2,170 capital Cash proceeds 1,885 management Net cash and cash equivalent 1,055 proceeds Income Income generating g
Slide 8: Wealth protection and mature: other transaction considerations
Wealth protection and mature: other transaction considerations Preference shares – Issued by AMP Life on transaction completion – Structured as an Additional Tier 1 hybrid security with similar terms to AMP’s existing Capital Notes – Three tranches of A$100 million with 5, 7 and 9-year maturities; y
Slide 9: Financial impacts
Financial impacts AMP post separation Expected annualised earnings1 impact on AMP post separation Australian wealth management • Unwinding of internal distribution arrangements and adjustments for tax and products transferring with sale expected to lead to a reduction in Australian wealth management
Slide 10: Summary
Summary Portfolio review completed − Completion of portfolio review will simplify AMP’s business − Transaction will deliver net proceeds of approximately A$1.1 billion in cash and cash equivalents, and A$1.1 billion in income-generating equity investments and interest in Resolution Life − Strong out
Slide 11: Important disclaimer
Important disclaimer Forward-looking statements in this presentation are based on AMP’s current views and assumptions and involve known and unknown risks and uncertainties, many of which are beyond AMP’s control and could cause actual results, performance or events to differ materially from those ex