Legal & General Group is to sell its closed mature savings business to the ReAssure division of Swiss Re for £650m, including its £21.4bn with-profits fund.
The insurer said the business being sold was largely made up of retail customers who hold traditional insurance-based pensions, savings and investment products.
Its assets at H1 2017 of £33bn include both unit-linked business and Legal & General's £21.4bn with-profits fund.
The firm said the operation has about a million customers and had largely been closed to new business.
It will be sold to Swiss Re's ReAssure division, which is a life and pensions business designed to manage closed and non-core in-force portfolios.
L&G added it was confident the sale would result in positive results for existing clients, who would benefit from economies of scale.
The group said it would now focus on accelerating its growth in the following areas:
• Investing & Annuities through Legal & General Retirement and Legal & General Capital;
• Investment Management through LGIM; and
• Insurance through Legal & General Insurance and General Insurance
L&G Group chief executive Nigel Wilson said: "This was a difficult decision as with-profits savings has been a part of Legal & General's UK business for over 50 years.
"However we have in Swiss Re a great partner, who will be an excellent steward of the business and its many customers and policyholders.
"Selling Mature Savings is the right decision for us - another important, measured, step in growing our company and updating our products.
"It will drive further earnings growth by allowing us to focus on our successful market-leading businesses and to accelerate the scaling up of our growth businesses."
The £650m profits from the sale will be received by L&G at the start of the new year. Swiss Re will assume economic exposure to the business from 1 January 2018 and formal transfer is expected to happen in mid-2019, subject to regulatory approval.
Swiss Re has agreed an investment management arrangement with LGIM to continue to manage the funds transferred, the business added.
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