Aviva has announced it has approved the sale of its French business to Aéma Group for €3.2bn (£2.7bn) in cash.
The insurance firm is moving to strategically focus on its strongest businesses in the UK, Ireland and Canada.
With the sale of Aviva France, the firm’s capital and liquidity is set to strengthen with an increase in excess capital of around £2.1bn and centre cash of £2.8bn.
Amanda Blanc, CEO of Aviva, said: “The sale of Aviva France is a very significant milestone in the delivery of our strategy. It is an excellent outcome for shareholders, customers, employees and distributors.
“The transaction will increase Aviva’s financial strength, remove significant volatility and bring real focus to the group.”
She added: “Aéma Groupe has a strong heritage in the French insurance industry and this transaction will propel it to a top 5 position in the French market. I am confident Aéma Groupe will be an excellent owner of Aviva France.”