Dutch insurance company Aegon has completed the sale of Aegon Seguros Generales, its general insurance subsidiary serving the Spanish sector. The sale ends Aegon's involvement in the general insurance market in Spain.

The deal, which will see Italian mutual insurance company Reale Mutua Group acquire the business, was originally set up at the end of last year. Aegon said in a statement that the divestment would enable it record a gain of approximately E160 million after tax, while the Italian insurer is believed to have paid in the region of E250 million to purchase the Spanish subsidiary.

As part of the original agreement, it is believed that Aegon Seguros Generales will continue to sell Aegon’s life and health insurance products in Spain and the Dutch insurer will also acquire the life portfolio of Reale Vida in Spain, which will give Aegon access to Reale Mutua’s existing agent distribution network. The agreement is valid for an initial five-year period.