Pressure on the Reserve Bank to take a tougher line on the insurance sector in the wake of CBL's failure is believed to be behind the regulators' stance on the sale of AMP's life insurance business.

AMP said the sale of its life insurance business to British firm Resolution Life was "highly unlikely to proceed" due to challenges in meeting conditions for approval by New Zealand insurance regulator the RBNZ.

The A$3.3 billion deal was due to see AMP handover its New Zealand and Australian life insurance business while its wealth and advice business remained under the dual-listed financial services

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