Royal Bank of Scotland (LON:RBS) said today it is renegotiating its joint venture deal with Aviva (LON:AV).
Under the new deal, which is expected to be concluded later this year, the insurer will continue to provide protection, savings and life products.
RBS will receive all the profits made from distributing these products.
The pair set negotiated their original joint venture deal around a decade ago.
The bank has also said it will book a one off loss £235 million as it repurchases Aviva’s right to half the distribution profit.
Separately, Aviva reported better than expected interim profits of £1.27 billion, a rise of 21 per cent on the year earlier.
The improvement reflected a 4 percent reduction in costs, a renewed focus on selling more profitable products, and strong results from Aviva Investors, the company's fund management arm.