UK-based insurer Old Mutual has agreed to sell the Finnish branch of Skandia Life Assurance Company to OP-Pohjola Group, a provider of banking, investment and insurance services.

The Finnish branch had gross assets of EUR1.3bn as of 30 September 2011.

Old Mutual said the transaction is part of its commitment to streamline its business and net proceeds after tax will be applied to reduce debt.

OP-Pohjola said that the acquisition will involve the transfer of some 100,000 customers’ unit-linked life and pension policies.

The transaction, which is subject to regulatory approvals and other customary conditions, is expected to close by the end of second quarter of 2012.

In December 2011, Old Mutual has revealed its plans to sell its Nordic business Skandia Insurance Company to Skandia Liv, for a gross cash consideration of GBP2.1bn.