Resolution Plc is buying back £100m worth of shares in Resolution Life Group from Royal and SunAlliance.
The share buyback is scheduled to be completed by 31 March.
The deal incorporates a dividend payment of £13.125m and a cash payment of £86.875m.
Additionally, Resolution has agreed to cancel the mis-selling liability and non-tax warranties given by R&SA to Resolution at the time of the sale.
R&SA indicated the payment will add £8m to its first-quarter results.
