Aviva PLC (LON:AV.) announced the sale of its entire shareholding in Aviva Poland to Allianz for €2.5bn (£2.1bn) as part of its strategy to focus on businesses in the UK, Ireland and Canada.
It is the eighth divestment for the FTSE 100 insurer in the past eight months, generating total proceeds of £7.5bn.
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Chief executive Amanda Blanc said the board plans to make “a substantial return of capital” to shareholders, while the capital will also be used to cut debt and boost investment for growth.
The transaction values the Polish company at €2.7bn (£2.3bn), including Santander's minority stake.
In 2020, the business made £130mln profit after tax and had gross assets and net assets worth £3.9bn and £400mln respectively as of December.
Aviva Poland comprises Aviva's interests in the life insurance business in Poland and Lithuania, and its Polish general insurance, asset management and pensions businesses.
The Aviva Poland business to be sold also includes Aviva's 51% shareholding in life and general insurance joint ventures with Santander.
The management and employees of Aviva Poland will transfer with the business while customers will remain unaffected.