Despite the Aviva exit, the group’s joint venture partner, Sabancı, will retain its 40% stake in the business.
Upon the deal’s expected completion in 2021, which is subject to regulatory approval, Aviva’s net asset value and solvency II surplus is set to increase by roughly £100m.
The announcement has come one day after the group revealed it has approved the sale of its French operation, Aviva France, to Aéma Groupe for £2.7bn.
The transactions are reportedly a part of Aviva’s strategic transformation to streamline its operations, focusing solely on the UK, Ireland, and Canada.
Speaking on the French deal, Amanda Blanc, CEO at 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.”
She added that the transaction will “increase Aviva’s financial strength, remove significant volatility and bring real focus to the group”.