Old Mutual has signed a deal to sell its Italian wealth business to Ergo Italia, a subsidiary of European private equity fund Cinven, for €278m.
As at 31 December 2015, Old Mutual Wealth Italy had €7bn of funds under management and contributed €22m of post-tax earnings for the year ending 31 December 2015.
Old Mutual in a statement said that the sale is the final part of the divestment of firm's continental European businesses, which will allow it to focus on its core UK and cross border markets.
In June this year, Old Mutual announced plans to demerge its wealth unit and list it on the London stock exchange as part of the restructuring.
The deal, subject to regulatory approvals and customary conditions, is expected to be completed within the next six months.