Aviva has announced the sale of RAC, the second largest roadside assistance provider in the UK, to global asset manager the Carlyle Group for £1 billion ($1.5 billion) in a bid to strengthen its focus on general and life insurance.

The sale is still pending regulatory and competition approval, which is to be completed by the end of the third-quarter reporting period.

Group CEO Andrew Moss says the sale is another important step for Aviva and will be of significant value to shareholders.

Proceeds from the sale will be held as cash on Aviva’s balance sheet, enhancing liquidity and enabling the insurer to invest further in its priority markets  of general and life insurance.

“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,” Mr Moss said.