China Life Insurance Co. Ltd. is said to be in talks to acquire up to A$3 billion worth of life insurance assets from AMP Ltd., The Australian reported Feb. 12, without citing sources.
The speculation comes as AMP CEO Craig Meller had said the company's plans to sell its life insurance operations, including its New Zealand operations, is well underway. AMP had reportedly retained Macquarie Capital to work on a possible IPO or demerger of its New Zealand operations, which may reportedly be worth up to A$1.87 billion.
China Life Insurance is a likely potential suitor for AMP's life insurance assets. The two companies already have a strong relationship, with AMP holding a 19.9% interest in China Life Pension Co. since 2014. AMP's asset investor, AMP Capital, also has a 15% stake in joint venture China Life AMP Asset Management.
It had been previously reported by The Australian Financial Review that U.S.-based American International Group Inc. and some Japanese companies are likely to be some of the foreign players that could bid for the life insurance unit.
AMP's life insurance division reported earnings of A$110 million for the 2017 financial year, and sources believe its embedded value is A$1.4 billion.
