Aviva Italia Holding, a subsidiary of UK-based life and general insurer Aviva, has agreed to divest two of its Italian insurance operations to Banco BPM for an undisclosed sum.

As per the terms of the agreement, Aviva will divest its entire 50% interest in a joint venture (JV) Avipop Assicurazioni and wholly-owned subsidiary Avipop Vita to Banco BPM.

Avipop Assicurazioni is owned by Aviva and Banco BPM. Together with Avipop Vita, Avipop Assicurazioni distributes life and general insurance products in Italy through Banco BPM’s bank branch network.

Aviva established a bancassurance partnership in protection and general insurance with the former Banco Popolare in 2007. The original agreement between Aviva and Banco Popolare included an option for Aviva to sell its entire shareholding to the bank in the event of a termination of the distribution agreement.

On 29 June 2017, Banco BPM dispatched a notification to Aviva stating its purpose to not renew its bancassurance agreement with Aviva.

Commenting on the agreement, Aviva International Insurance CEO Maurice Tulloch said: “This transaction will realise value for Aviva shareholders and will allow us to invest further in our future growth. Aviva has momentum in Italy and I am confident about our prospects.”

Aviva said that its JVs in Italy with UBI, UniCredit including other business units Aviva Life and Aviva Italia are unaffected.