The AMP Limited (ASX: AMP) share price is down 1% today, following speculation that the company may divest its troubled life insurance operations. China Life Insurance Company Limited is considering the acquisition of AMP's life assets for $3 billion.
AMP has strong ties with the Chinese heavyweight insurer, including the joint venture China Life AMP Asset Management and a 19.9% stake in China Life Pension Company. China Life, together with Kohlberg Kravis Roberts and Macquarie Group Ltd (ASX: MQG), considered a takeover of AMP Limited in 2017, but the bid fell through.
AMP disappointed investors with near-zero share price growth over the past year, and it is now expected to undertake a major restructure of its business by abandoning underperforming operations and focussing on higher-growth sectors.
Suncorp Group Ltd (ASX: SUN) is also seeking to divest life insurance, and three of the four big banks have already sold their life operations to foreign insurers.
Any significant sale of assets will most likely be announced at the AGM scheduled in May.
