Insurance company Aviva has announced that it has agreed to sell its French operation for €3.2 billion to Macif’s Aéma Groupe. The move will see the company focus more on its key markets in the UK, Ireland and Canada. The London based company says the sale will also boost excess capital and cash reserves.

Aviva France is thought to have some 3 million customers generating €7.8 billion in revenue annually, although it was not involved in vehicle insurance, which makes up a large part of premiums in Ireland and the UK.

Aviva’s CEO Amanda Blanc commented, “The transaction will increase Aviva’s financial strength, remove significant volatility and bring real focus to the Group.”

Aviva is also expected to sell other European and Asian businesses this year as part of a restructuring plan.