Suncorp has sealed the divestment of its 50% stake in RACT Insurance for $83.75 million to mutual motoring body RACT Group, which owns the other half of the Tasmanian joint venture.

The insurer announced last week the completion of the transaction, after clearing regulatory processes.

Suncorp first announced the disposal agreement in July, which it says is part of an ongoing effort to simplify its portfolio.

The insurer expects to book a pre-tax profit of $65 million from the divestment.