Aviva is set to acquire the UK protection business of AIG for a consideration of £460m.

The deal - announced today (25 September) - is expected to close in the first half of next year and will significantly enhance Aviva's position in the protection market.

A total 1.3 million individual protection customers and 1.4 million group protection customers will move under the Aviva umbrella once the deal is completed.

Group chief executive Amanda Blanc confirmed the acquisition "brings significant strategic and financial benefits".

"It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the group towards capital-light growth," she added.

Aviva also said a newly-bolstered protection businesses would allow it to reach more customers through AIG Life's established relationships with both regional and corporate IFAs.

It added: "The combined businesses will also create a more efficient platform from which to serve existing and new customers."