Royal & SunAlliance has sold its UK asset management operation, Royal & SunAlliance Investments (RSAI), to Friends Ivory & Sime for around £240m.
R&SA said the proceeds will be used to support the growth of its general insurance business.
The 280 staff employed by RSAI will transfer to Friends Ivory & Sime.
Under the agreement R&SA will enter into 10 year investment
management agreements with Friends Ivory & Sime to manage those insurance business investment assets currently managed by RSAI. These total around £30bn of funds under management.
Group chief executive Bob Mendelsohn commented: "The sale of RSAI is part of our overall strategy to focus on our general insurance business and our core competencies of underwriting, risk and claims management.
"It is part of our disposal programme, which is intended to release over £800m of capital during 2002 and help us to take full advantage of the encouraging environment in the general insurance market."
The transaction is expected to complete within three months, subject to regulatory and Friends Ivory & Sime shareholder approvals.
