Netherlands-based life insurance, pensions and asset management company Aegon has signed an agreement to divest its 35% stake in La Mondiale Participations to La Mondiale for EUR350m.
La Mondiale Participations is a joint venture that was formed in 2002 as a result of partnership between Aegon and La Mondiale. The joint venture provides life insurance, pensions and savings products in France and Luxemburg.
Aegon CEO Alex Wynaendts said: "We look back at a successful partnership over the past 12 years with La Mondiale and are pleased with the results that we have achieved together.
"Following a strategic review and in line with our commitment to optimize our portfolio, we concluded that the partnership no longer matches our ambitions."
Aegon intends to include the proceeds in its excess capital buffer, and is expected to increase the group’s IGD solvency ratio by around 5% points.
The company noted that its share in net underlying earnings of the partnership amounted to EUR19m in the first nine months of 2014.
Subject to regulatory approval, the transaction is expected to be completed in the first quarter of 2015.