Financial advice business Entireti will buy AMP's financial services licensees Charter, Hillross and AMP Financial as well as Jigsaw for $10.2 million, with AMP to retain an equity stake in the new joint venture.
"This is a transformational deal that is going to create an entity that will service 1300 advisors in Australia, the biggest in the country," AMP chief executive Alexis George told an investor call on Thursday.
She said Matt Lawler, head of advice for AMP Australia since 2021 and former CEO of Wealth Market, will become chief executive of the new entity.
Additionally, AMP's stake in 16 financial advice practices will be acquired by AZ Next Generation Advisory for $82.2 million.
"We're now in a position of greater strength with the announcement of the transaction today, and really are able to focus on the next phase for AMP, which is about growth," she said.
Chief financial officer Blair Vernon said advisor sentiment continues to improve, as has advisor average revenue.
"We see those metrics as laying a very firm foundation for the very important partnership announced today, and transition for advisors into that new joint venture," Mr Vernon said.
Shares in AMP rallied nine per cent to $1.23 in morning trade after the announcement of the deal, a reduction in debt and a firmer profit in the six months to June 30.
Underlying first-half net profit after tax rose 5.4 per cent to $118 million despite a hit to the banking division from a housing market slowdown.
AMP Bank reported an underlying net profit of $35 million, slashed from $57 million a year earlier, as net interest margins came under pressure from stiff competition on mortgage and deposit rates.
A small business digital bank is on track to launch in the first three months of 2025 to help diversify revenue and funding.
"Undoubtedly, the market in Australia remains competitive, but we still believe there is an opportunity in this small and micro business area," Ms George said.
"We have made good progress this half on our key strategic commitments, and we have positive momentum heading into the second half of the year," she said.
Superannuation and investments posted an underlying net profit of $34 million, up from $28 million in the first half of 2023, with stable margins and an ongoing reduction in outflows.
After being stung by regulators for selling insurance to dead people, the company said it had "strong investment returns, competitive fees and a compelling insurance offering".
AMP said the superannuation business was positioned to retain and acquire new members after achieving an 11.14 per cent investment return for AMP's largest fund, the MySuper 1970s super option.
The financial services arm posted a loss of $15 million, an improvement on the loss of $25 million a year earlier.
The group declared an interim dividend of two cents a share, 20 per cent franked.
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