Aviva said it expects to use the increased capital and cash to support its previously communicated capital framework of debt reduction, investment for long-term growth and return of excess capital to shareholders.
Aviva added the transaction is subject to customary closing conditions and is expected to complete within 12 months.
In 2020, Aviva Poland reported profit-after-tax of £130m and has gross assets and net assets to the value of £3.9bn and £0.4bn respectively as at 31 December 2020. Aviva Investors Poland, which manages funds of Aviva Poland, will be part of the transaction.
The agreement represents the eighth transaction Aviva has announced in the last eight months, and is the conclusion of the group’s plan to refocus its portfolio.
Amanda Blanc, chief executive officer of Aviva, said: “The sale of our Polish business is an excellent conclusion to the refocusing of our portfolio announced just eight months ago. The sale of our eight non-core businesses will generate total cash proceeds of £7.5bn.
“We have made significant progress with our debt reduction plan and in due course we will make a substantial return of capital to shareholders.”
She added: “Our strategic focus is now on our strongest businesses in the UK, Ireland and Canada where we have leading market positions and strong growth potential.”
“This transaction delivers excellent value for Aviva shareholders. It is also a very positive outcome for our customers, employees and distribution partners and we are confident that Aviva Poland will continue to prosper under Allianz’s ownership.”