The Reserve Bank of New Zealand (RBNZ) has affirmed it has not changed its approach to applications for changes of ownership of life insurance companies.
The regulator said there had also been no change in New Zealand insurance law or regulations since October 2018, BusinessDesk reported. RBNZ’s comments follow the collapse of AMP Life’s sale to Resolution Life.
The publication detailed a statement released by RBNZ, which suggests the regulator promptly made AMP and Resolution Life aware of regulatory requirements when they first made contact in September 2018.
“Their proposed transaction would constitute a fundamental change in the nature of AMP Life’s business,” the statement reads. “AMP would no longer accept new business and the scale of its business would substantially shrink over time. Existing life policies would be ‘run-off’ to expiry over a period of some decades.
“The proposed transfer needs to comply with insurance regulatory requirements” in both Australia and New Zealand and RBNZ has been in frequent communication with APRA.
BusinessDesk added that RBNZ claims Resolution Life did not formally apply for approval until June 07.
As previously reported, AMP advised that the sale of AMP Life to Resolution Life is highly unlikely to proceed, due to challenges in meeting the condition precedent for Reserve Bank of New Zealand (RBNZ) approval. A notice by Resolution Life, suggested RBNZ, would not consider the firm’s change of control application unless it agreed to have separate, ringfenced assets held in New Zealand.
AMP announced the sale of its life insurance business in October 2018, following damning revelations from Australia’s royal commission into financial services.
