Hannover Re has teamed up with a private equity firm to acquire parts of financial services provider Skandia based in Germany and Austria.
Old Mutual, Africa’s biggest insurer, is selling the units as part of its strategy to simplify its operations in Europe.
The two businesses, part of Old Mutual Wealth, will be bought by an acquisition vehicle formed by Hannover Re and private equity firm Cinven. The business will be renamed Heidelberger Leben Group.
The consideration for the transaction is €220 million in cash, plus interest to completion.
Last year, the businesses had combined funds under management of €4.9 billion and post-tax adjusted operating profit of €27 million.
The transaction is part of Old Mutual Wealth's commitment to simplify its operations in Europe and focus on a select number of core growth markets.
Subject to regulatory approval, the transaction is expected to complete by the end of the third quarter of 2014.