Aviva hopes to raise €1.2bn (£1.1bn) from the sale of 42 per cent of Delta Lloyd, its Dutch subsidiary, in what will be Europe’s biggest initial public offering in at least 18 months, the UK’s second-largest insurer said.

Aviva is selling more shares than expected at a lower-than-expected valuation. Analysts saw confirmation of the details on the sale as good news, but Aviva’s stock slipped 6.8p on Monday to close at 443.5p.