Aviva is gearing up to dispose more than half its remaining shareholding in Delta Lloyd, the Dutch insurer, in an strategy of its restucturing plan.

The UK insurance major said nearly 37 million shares will be disposed at €10.75 a share, from previously announced plan of 25 million shares, "due to favourable investor demand".

The underwriter expects to pocket approximately £318m from the sale of the stake, subsequently its stake in Delta Lloyd will remain from 41% to just under 20%, reports The Telegraph.

The latest move of Aviva is being seen as to reinforce its presence in the domestic market and to improve its capital base.

With an aim to emerge as the strong player in the insurance sector, Aviva is set to cut staff, sell 16 businesses and seek "significant improvement" in 27 others in order to quash the company’s poor share performance.

Although, it is not clear that the underwriter is considering to dispose its US business, the industry sources indicates that it is likely to be sold for about £1bn over the next few months.