AEGON has sold its UK based Guardian life and pension business to Cinven, a European private equity group, for a total cash consideration of GBP 275m.

For this deal, AEGON Asset Management has entered into a long-term agreement with Cinven and will continue to manage the assets of Guardian life, which total GBP7.4bn.

AEGON’s decision to divest Guardian is expected to help them meet their strategic objective to optimise its portfolio of businesses.

The agreement was first announced in August 2011, and AEGON was looking to close a deal to divest the unit since 2001.

Over 300,000 life insurance policies in the UK are being managed by Guardian, said AEGON, which an international life insurance, pension and asset management company based in The Hague.