UK’s Aviva has agreed to sell 58.44% controlling stake in Aviva NDB Holdings Lanka to AIA Group’s subsidiary, American International Assurance Company for a cash consideration of £31m.

Aviva NDB, which was formerly known as Eagle Insurance, is the result of a joint venture (JV) between Aviva Asia Holdings and Sri Lanka’s NDB Bank, with Aviva holding a majority stake in the JV since 2006.

The JV is an insurance provider in Sri Lanka and was the first to create a bancassurance distribution and introduce ‘wealth planners’ in the country.

Aviva chairman John McFarlane said, "The sale of our stake in Aviva NDB is an example of further progress towards narrowing the group’s focus, as we concentrate on fewer business segments where we can produce attractive returns with a high probability of success."

Subject to Sri Lankan regulatory approvals including Department of Exchange Control and Securities and Exchange Commission, the sale is expected to complete before the end of 2012.

Upon completion of the deal, Sri Lanka will be AIA’s 16th market in Asia Pacific.

AIA Group and its subsidiaries trade in 14 countries in Asia Pacific, including Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau and Brunei and India.

The firm offers retirement savings plans, life insurance and accident and health insurance.