AMP Sells NZ General Insurance Business

Media Release

20 September 2001

AMP And Royal & Sunalliance Form Partnership For
New Zealand General Insurance Business

Leading international financial services company, AMP Limited, today announced the establishment of a partnership with Royal & Sun Alliance Insurance (New Zealand) Limited for its general insurance business in New Zealand.

Royal & Sun Alliance Insurance (New Zealand) Limited is buying AMP’s New Zealand general insurance business, including GIO New Zealand and its 50 percent share in the AA joint venture – AA Insurance, for NZ$60 million. An exclusive distribution agreement has been put in place that will enable general insurance products, manufactured by Royal & SunAlliance, to be branded and distributed by AMP.

AMP recently sold its Australian and UK general insurance businesses in similar agreements.

This announcement has no impact on AMP’s investment, life insurance or banking businesses in New Zealand.

AMP Chief Executive Officer, Paul Batchelor, said general insurance remains an important part of AMP’s offer to customers.

“This partnership will ensure that AMP continues to focus on its strategy to provide a complete range of value-adding wealth creation and protection services to our customers,” Mr Batchelor said.

“We will continue to offer customers a full range of financial products and services – including superannuation, investments, life insurance, banking and general insurance. The arrangements we have with our customers are unchanged”.

“Creating a partnership that transfers the manufacturing of general insurance products to Royal & SunAlliance, a global insurer with a strategy to grow its general insurance business, means AMP can focus on its expertise in distribution and customer management. We will also benefit from Royal & SunAlliance’s economies of scale and AA- Standard & Poors claims paying ability rating”.

Royal & SunAlliance Insurance NZ Managing Director Roger Bell said: “I am delighted that we will be working in partnership with AMP which, like Royal & SunAlliance, is a leading international financial services organisation”. This agreement provides benefits to AMP’s existing and future general insurance customers and to both organisations.

“For Royal & SunAlliance, this partnership provides an attractive distribution channel with access to a quality adviser network and a relationship with a strong and well regarded brand”.

“There are also strong advantages for AMP’s 134 general insurance staff who will become part of an organisation that is strategically committed to the business and has significant scale. In fact, with this acquisition, Royal & SunAlliance is now the second largest general insurer in New Zealand,” Mr Bell said.

AMP and Royal & SunAlliance will work closely together to prepare for the transition. The transaction is subject to Australian regulatory approval and the change of ownership is expected to take place on 1 October 2001.

END

About AMP

AMP is a leading international financial services business, providing wealth creation and protection products and services to around 10 million customers worldwide. Principal activities include retirement savings, funds management, life and general insurance, financial planning and banking services. AMP operates in 16 markets around the world with a significant and efficient domestic presence in its three home markets of Australia, New Zealand and the UK. AMP has 22,000 employees worldwide, manages assets of almost A$300bn and has a market capitalisation of approximately A$20bn.

About Royal & SunAlliance

Royal & SunAlliance has offices in almost 50 countries around the world, transacts business in over 130 countries and employs 50,000 staff worldwide. Through the energy and talent of Royal & SunAlliance staff worldwide it is a market leader.

Royal & SunAlliance had a Group Operating Profit before tax of over £476 million and had funds under management of more than £64 billion as at 31 December 2000.

Royal & SunAlliance history dates back almost 300 years and encompasses the operations of companies such as the Sun (established in 1710) and the Royal (established in 1845).

Royal & SunAlliance has been established in New Zealand since 1876 and has a Standard & Poors claims paying ability rating of AA-.

ENDS

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