Wesfarmers will sell its insurance underwriting business in Australia and New Zealand to Insurance Australia Group.
The $1.85 billion deal represents a $700 million profit over book value.
Shares were up 0.7 per cent after the announcement.
The underwriting operations include commercial lines of business, including the Lumley and WFI brands, and a fast-growing personal lines business which is sold through the Coles Insurance affinity partnership.
You can read the statement here.