Aviva has agreed to sell RAC for £1bn as it looks to focus on its insurance and savings businesses.
The provider’s roadside assistance business will be sold to global asset manager the Carlyle Group in the third quarter of 2011, subject to regulatory and competition approval.
Aviva says the proceeds will be held as cash on the company’s balance sheet, enabling continuing investment in “priority markets”.
Aviva group chief executive Andrew Moss says: “The sale of RAC is another important step for Aviva and realises significant value for our shareholders.
“Together with the recent partial disposal of Delta Lloyd, it demonstrates clear delivery of our strategy and provides the flexibility to deepen our presence in the priority markets where we have strength and scale.”