29 Jun 2020

AMP Life 'zombie sale' angers policyholders, calls for review

From Nine To Noon, 9:08 am on 29 June 2020
New Zealand dollars with Reserve Bank of New Zealand text.

Photo: 123RF

There are calls for an urgent review of the Insurance Act after the recently approved sale of AMP Life  to a tax haven-based life insurance owner that  specialises in buying so called  'zombie funds'. Policyholder Andrew Body, has written to the Finance Minister and will make an oral submission to the Finance and Expenditure Select Committee on Wednesday in support of his petition, which got around 750 signatures, calling for the review. He says there is still far too little information about  the purchaser, the Bermuda-based private equity firm Resolution Life, in a deal that policyholders have no choice but to participate in. That's despite new conditions imposed on the sale by the Reserve Bank that  it says will protect the 200,000 policyholders and their families.