Italian lender Banca Carige has signed a deal to sell two of its insurance businesses to Apollo Management for $394m in cash.

The sale includes Carige Assicurazioni and Carige Vita Nuova units.

Banca Carige and Apollo Management also signed deals for sale of insurance products through the bank’s branches.

Subject to regulatory approvals, the transaction is expected to be completed in the first quarter of 2015.

The sale is part of Banca Carige’s strategy to strengthen finances and restore profitability, and comes after it was asked to increase buffers, reported Bloomberg.

Last week, the bank sought to raise €500m in a rights offer after stress tests by European Central Bank revealed a capital shortfall of about €810m.

As part of this move, Banca Carige is planning to sell insurance, private banking and consumer-credit businesses.