Aegon has agreed to sell Stonebridge to London-headquartered Global Premium Holdings group in a transaction valued at £60m.
The deal price consists of the purchase price and dividends related to the transaction and excludes a contingent consideration of up to £10m.
Stonebridge offers accidental death and hospitalisation products. It is said to provide policies to around 200,000 customers across the UK, France, Spain, Germany, Italy, Ireland and the Nordics.
The acquirer is a subsidiary of Embignell group, which offers a range of accident and sickness insurance policies.
Aegon said that this transaction will further simplify its business profile and will not have any material effect on its capital position and results.
The divestment is subject to normal regulatory approvals for transactions and is expected to be completed before the end of this year.
Stonebridge has been closed for new business from 2014.
In 2014, UK financial watchdog accused the company for targeting low- and middle-income customers without college degrees or professional qualifications, with its personal accident, accidental death and accidental cash plan insurance products from April 2011 and December 2012.
The FCA found that the products were sold over the phone to retail customers in the UK, Germany, France, Italy and Spain, with lists of potential customers provided by Stonebridge’s business partners, including catalogue sales firms, online retailers, banks and credit card companies.
In July this year, Aegon and Banco Santander completed the expansion of their their life and non‑life insurance partnership in Spain.
Last year, Canada Life Reinsurance partnered with Aegon in a long-term longevity reinsurance agreement to cover €12bn in-force liabilities.