StockMarketWire.com - Insurance company Aviva sold its French business to Aema Groupe for €3.2 billion as part of a plan to focus on its UK, Ireland and Canada businesses. The transaction covered Aviva's French life, general insurance, and asset management businesses and its 75% stake in UFF5, the company said.

The sale would increase Aviva's solvency II capital surplus by about £0.8 billion and Solvency 2 cover ratio by about 22%.

Upon completion of the deal, the company would see excess capital increase above 180%.

'The sale of Aviva France is a very significant milestone in the delivery of our strategy ... [and] will increase Aviva's financial strength, remove significant volatility and bring real focus to the group,' Aviva said.

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