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Aegon has agreed to sell its UK insurance business to Standard Life for a total value of 2 billion pounds ($2.7 billion), the Dutch insurer said on Wednesday.

The payment would consist of a cash amount of 750 million pounds and 181.1 million shares, or a 15.3% stake, in Standard Life, Aegon said.

The stake would make Aegon the British insurer’s largest single shareholder, according to LSEG data, with the Amsterdam鈥憀isted group also entitled to appoint one non鈥慹xecutive director to Standard Life’s board.

Cash received at the closing of the transaction would be used for a combination of share buybacks and reducing debt, the company said.

Aegon said the divestment was expected to cause a reduction of 5 percentage points in the group solvency ratio. It also updated its financial forecast. It now expects its free cash flow run-rate and group operating result run-rate to increase by around 5% per year between 2025 and 2027.

Yearly operating capital generation growth is seen between 0% and 5% over the same period.

Aegon had previously said it was reviewing its insurance operations in Britain, eyeing a possible sale, as part of its upcoming move to the U.S. and rebranding into Transamerica.

Aegon reiterated that its UK asset management services would remain part of the group.

The deal is expected to close around the end of 2026, subject to regulatory approvals.

($1 = 0.7372 pounds)

(Reporting by Jakob Van Calster, editing by Milla Nissi-Prussak)

Photograph: The logo of Dutch insurer Aegon is seen at the firm’s headquarters in The Hague are seen on October 27, 2008. Photo credit: Koen Suyk/AFP/Getty Images