The demerger of AMP Limited and AMP Capital’s private markets business will allow AMP Limited to explore new opportunities, including retirement, and drive growth in the banking and wealth platforms.
AMP said the demerger in the first half of 2022 would enable the two businesses to increase focus on their respective markets and growth opportunities.
AMP chief executive, Alexis George, said: “The two largest assets held by Australians and New Zealanders are their home and super – those are the needs that AMP serves.
“AMP has been rapidly transformed over the past three years. We are no longer a life insurer. In wealth management we have shifted from a vertically integrated proposition to a contemporary, customer-led service provider. We have invested in our bank to be able to grow in a deep and competitive market.
“We see a significant gap in the market in retirement and have strong capability within our business to better serve this market. We also believe we can further scale our business by taking our products direct to clients.”
The bank said the demerger would allow AMP Limited to:
The private markets business chief executive, Shawn Johnson, said: “Our team has built a strong track record in infrastructure and real estate – and has the capability to expand into new adjacencies and pursue further global growth opportunities, supported by increasing demand for private markets assets from investors around the world.
“We have a clear strategy to separate, simplify and broaden our client base and diversify our investment capabilities. We will continue to play a leading role in infrastructure and real estate investments around the world as an independent company.”
The bank said the demerger would allow the private markets business to:
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