AMP has sold the runoff operations for a profit of $73m

AMP has sold its closed reinsurance and general insurance operations, Cobalt/Gordian, to closed insurance specialist Enstar Group for A$585m ($518m).

The sale includes both the manager of the businesses, Cobalt and the closed book portfolios including Gordian.

Based on book value at the time of sale, AMP will profit from the sale of around A$83m ($73m).

As a consequence of the sale, minimum shareholder regulatory capital requirements wil reduce by around A$137m, while Group Office capital will increase by around A$157m.

AMP plans to use the increase in Group Office capital to lift dividend payments.

AMP chief executive Andrew Mohl said that AMP had generated significant value from the runoff of Cobalt/Gordian in the past few years, but it had received attractive terms and conditions from Enstar to facilitate a clean exit from the business.