Business update - 31 December

Resolution Life Australasia reported a statutory profit of A$222 million for the year ended 31 December 2021 and in March 2022 declared a dividend of A$93 million and a capital return of $148.2m (subject to APRA approval) relating to 2H21.

The business has remained resilient in 2021 during the COVID pandemic, generating a stable profit and capital emergence for shareholders while continuing its transformation to become a customer obsessed, data driven and digitally enabled business.

As at 31 December 2021 Resolution Life’s capital base of A$2,699million was A$1,743 million in excess of the Prescribed Capital Amount of A$956m which represents a Capital Adequacy Multiple of 282%. 

Resolution Life Australasia acquires AIA Australia’s Superannuation & Investments business

Resolution Life Australasia , in February 2022 announced that it has entered into an agreement with AIA Australia Limited to acquire its Australian Superannuation & Investments business.

The acquisition will deliver significant value and scale benefits and will strengthen Resolution Life Australasia’s position as the largest life insurer by assets in Australasia. It will increase Resolution Life’s funds under management and administration by more than A$8 billion and result in c.162,000 AIA Australia customers joining Resolution Life’s existing 1.1 million Australasian customer base.

Savings, investment and retirement products are a core part of Resolution Life’s portfolio and AIA Australia’s Superannuation & Investments business will complement this existing business. AIA’s Superannuation & Investment business will be fully integrated into Resolution Life’s local business operations where policyholders will benefit from Resolution Life’s dedicated focus on existing customers and significant investment in technology, digital and AI capabilities. 

Resolution Life Group

In November 2021, Resolution Life Group announced that it had agreed to acquire AMP Limited’s remaining 19.1% minority stake in the Resolution Life Australasia business for A$524m. This remains subject to regulatory approval and is expected to complete in 1H22.

In December 2021 Resolution Life Group entered into a reinsurance agreement with Allianz Life. It announced that US$35bn of fixed indexed annuities reinsured from Allianz Life Insurance Company of North America (“Allianz Life”) to Resolution Life’s reinsurance platform, Resolution Re, and Talcott Resolution Insurance Company (“Talcott”), an affiliate of Sixth Street.

• Resolution Life’s reinsurance platform, Resolution Re, will reinsure US$26bn of fixed indexed annuity reserves from Allianz Life
• Resolution Re to separately retrocede US$12bn to an affiliate of Talcott
• Resolution Life Group has now invested c.US$5bn of equity, with c.US$90bn of assets under management, demonstrating its ability to execute scale and complex transactions for global life insurers
• The second reinsurance agreement with Allianz Life, and is one of three reinsurance transactions announced by Resolution Life in the last six months

Resolution Life Group continues to actively seek out further acquisition opportunities both within Australia, New Zealand and globally.

Key metrics – Resolution Life Australasia
(in AUD millions)

Credit ratings
Resolution Life Australasia’s credit ratings are as follows:

Audited Financial Report

Resolution Life Australasia Limited’s audited financial report for the year ended 31 December 2021 has been finalised and is made available here.

Contact details

For investor enquiries, please contact:
Graham Duff Treasurer & Deputy CFO, Resolution Life Australasia
+61 411 703 429 | graham.duff@resolutionlife.com.au

For any media enquiries, please contact:
Erica Borgelt
erica.borgelt@newgatecomms.com.au

or

Matthew Jackson
Matthew.Jackson@newgatecomms.com.au