The firm has agreed to sell its entire 80% shareholding in the subsidiary to partner UBI Banca.
This transaction represents another “strategic milestone” as Aviva delivers on its “commitment to refocus its portfolio”.
After completion, Aviva will receive €400m (£355m) in cash consideration and its net asset value would rise as at 30 June by £0.12bn.
Customers of Aviva Vita will continue to deal with the company as before and there will be no impact to customer policies as a result of this announcement.
Amanda Blanc, chief executive officer of Aviva, said: “Our strategy is about focus and delivery. The sale of Aviva Vita is another important step forward as we reshape our portfolio and follows the recent announcement of the majority sale of our Singaporean business.
“We will continue to be decisive as we seek to transform Aviva for the benefit of our shareholders.”