Royal & SunAlliance (R&SA) took a long-awaited step towards its target of selling off £800m worth of non-core businesses.
It is transferring its asset management arm to Friends Ivory & Sime (FIS) for £240m.
The price was higher than expected by analysts, but will give R&SA badly needed funds to support its book of large commercial risks.
FIS will manage R&SA's general and life insurance funds, currently totalling about £30bn, for 10 years.
The deal increases its assets under management from £34bn to £70bn.
Analyst Roger Hill of UBS Warburg said: "The price was more than we had in our valuations, so in that sense we see it as better for R&SA than we thought.
"It's taken so long to take this first step, we're grateful to see something."
Attention will now focus on how much progress
R&SA has made on its other disposals.
Chief executive Bob Mendelsohn said in February that of seven disposal projects, five had received bids.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
