Ageas said on Wednesday it had agreed to sell its majority stake in Tesco Underwriting Ltd to joint venture partner Tesco Bank for 104 million pounds.

The UK-based partnership, which focused on motor and household insurance, was set up in 2009 and extended for a seven-year term in 2014. It had a book value of 100 million euros as of end-June, Ageas said in a statement.

Ageas said the sale, which would allow it to focus on its core business including its broker partnerships, is expected to generate a capital gain of around 9 million euros and have a 3% positive impact on its solvency position.

The deal is expected to close in the second quarter of 2021, subject to regulatory approvals.

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