Old Mutual to sell Finnish Skandia arm

Old Mutual, the FTSE 100 savings and investment group, said it had agreed terms to sell the Finnish branch of Skandia Life Assurance Company to insurer OP-Pohjola osk.

The transaction is part of Old Mutual's plan to streamline its business, with net proceeds after tax going to reduce the group's debt.

However, it did not give details of how much the deal would be worth.

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The sale is subject to regulatory approvals and other customary conditions and is anticipated to close by the end of Q2 2012, Old Mutual said.

The firm's shares leapt last week when it announced it would sell its Nordic business Skandia AB for £2.1bn.

That deal, which still needs regulatory and shareholder approval, is expected to complete during the first quarter of 2012.

The news of the Skandia AB sale sent Old Mutual's shares up almost 12% by mid-afternoon trading.