AMP takes 32% stake in NZ's Retirement Income Group
What's the deal? AMP New Zealand has acquired a 32% stake in Retirement Income Group (RIG), the firm founded by Ralph Stewart that sells Lifetime Retirement Income products. The purchase makes AMP RIG's largest shareholder. Terms were undisclosed.
What each does: RIG, established by Stewart in 2014, is the umbrella organisation for Lifetime Asset Management, which specialises in lifetime-pension products. AMP is a wealth and retirement provider with operations in New Zealand and Australia.
Why now? AMP is building out its retirement-income offerings while narrowing its wider wealth business, pointing to growth in lifetime-pension products such as MyNorth Lifetime in Australia.
What's the endgame? The stake gives AMP a closer link to an established specialist rather than a new market entry. Lifetime has expanded by taking over legacy super schemes — including three previously run by AMP — and its funds have passed $1 billion.
The history: The two have crossed paths before. Stewart was chief executive officer of AXA Insurance and Asset Management in New Zealand before AXA was sold to AMP.
The signal: The deal deepens a commercial tie between AMP and a firm it once ceded schemes to. Its significance will hinge on whether the stake brings distribution or product benefits.
Read more: goodreturns.co.nz
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