Ageas is selling its life and protection arm Ageas Protect to American International Group (AIG) for £181 million.
The transaction is subject to regulatory approval and expected to be completed by the end of the year.
Ageas Protect told COVER that the process is expected to take around 3-4 months.
Darren Spriggs, managing director of Ageas Protect (pictured) said: "We are a small part of Ageas, in the UK 96% of its activity is non-life. This move allows Ageas to focus on non-life activities."
The deal was also announced as Ageas revealed its half year trading update for 2014.
At the end of 2013, total income for Ageas UK was £2,116.8 million including Ageas Protect's gross written premium (GWP) of £91.8 million.
Profit for Ageas UK was £85.2 million including a loss for Ageas Protect of £(1.8) million.
During the first six months of 2014, Ageas Protect posted total GWP inflow of £52.5 million - a 20.2% increase on the previous year which stood at £47.3 million. Ageas Protect had a post-tax profit of £1 million for the first half of 2014.
Spriggs commented: "We are close to tipping point, where we move to point of making money due to scale and organisation. This is a move from loss to profit. It is a big deal."
Ageas Protect was launched in the UK in July 2008 and now has a 4.8% market share in the UK individual protection market.
Its current parent company Ageas in the UK is primarily a Non-Life business with over nine million customers and significant positions in the general insurance market.
Spriggs added that the transition would be "business as usual" in terms of staff and products.
He said: "This deal provides a platform into the UK for AIG but is also a win for us, as we have been incredibly supported. AIG can provide a springboard of financial strength and capability.
"Looking to the near term it will be business as usual. AIG has bought cleanly into what we do and is supportive of both the staff and processes so there will be nothing shelved in terms of staff and products."
Commenting on the announcement, Martin Werth, chief executive of UnderwriteMe and former managing director and founder of Ageas Protect said: "It looks really interesting. It looks like a great opportunity for both companies."
