Aviva UK says it agrees to sell its controlling 58.44 percent in Aviva NDB to American International Assurance Company to 31million Euro ($50.05 Million) payable in cash.

Meanwhile Market Watch stated that AIA, 13.7% owned by American International Group Inc. AIG -1.00% , agreed to purchase a 92.3% stake in Aviva NDB Insurance PLC for $109 million in cash from British insurer Aviva PLC and Sri Lanka's National Development Bank, it said in a statement.

The transaction includes a 20-year exclusive bancassurance agreement with NDB, one of Sri Lanka's major financial conglomerates with a nationwide bank branch network, as well as AIA's sale of an 83.9% stake in NDB Aviva Wealth Management Ltd.

Sri Lanka has "a compelling combination of strong economic growth prospects and low existing levels of insurance penetration," AIA Chief Executive Mark Tucker said in a statement, adding that Sri Lanka is AIA's 16th market in Asia Pacific.

The transaction is subject to approval by the Department of Exchange Control in Sri Lanka, the review of which is expected to be completed by the end of 2012, AIA said, adding that the acquisition will be funded by existing cash resources.