British insurer Old Mutual has agreed to sell its wealth management arm in Italy to local insurance firm Ergo Italia.
The firm sold Old Mutual Wealth Italy (OMWI) for €278 million (£237.5 million) to Ergo Italia, which is owned by London-headquartered private equity firm Cinven.
The transaction, which still needs regulatory approvals, is expected to be completed within six months.
Reuters reported last week that Cinven defeated rival bids from Luxembourg-based insurer Lombard International Assurance and US investment firms JC Flowers and Apollo.
The UK insurer said the sale is the final part of the divestment of Old Mutual Wealth's continental European businesses, allowing it to focus on its core UK and cross-border markets.
According to Old Mutual, OMWI had €7 billion of funds under management and contributed €22 million of post-tax earnings for 2015.
The sale of the Italian business would pave the way for other divestments as Old Mutual is set to break up its business, cut costs and revamp earnings, according to Reuters
Old Mutual announced last March that it will split itself into four businesses: a South African bank, an emerging markets unit, a US asset manager and a British wealth manager.
Apart from the business break-up plan, the insurer also plans to sell 10% of Old Mutual Wealth in an initial public offering next year, the Telegraph
Old Mutual to close £183 million US deal this month
Old Mutual to sell subsidiary for £254 million as break-up dawns