Aviva said today that it would float a minority stake in its Delta Lloyd insurance subsidiary in the Netherlands by next month.

The insurer first said that it aimed to float Delta Lloyd "when market conditions allow" at its interim results in August.

Analysts at Panmure Gordon estimated today that Aviva could raise £1.3 billion in the float, giving it the firepower to make acquisitions in both the UK and overseas.

However, sources close to the insurer played down that figure, suggesting that a capital-raising of up to €1 billion (£915m) was more realistic.

Some of the insurer's shareholders believe that Clive Cowdery's bid vehicle, Resolution, could target parts of Aviva's operations, specifically in the UK. They believe that Andrew Moss, the chief executive, is keen to show that the insurer could also play a part in the consolidation of Britain's life sector.

Delta Lloyd's regulatory valuation is £3.7 billion and Aviva is likely to sell between 30 and 35 per cent which would generate sale proceeds of around £1.3 billion, according to analysts at Panmure Gordon.

The insurer said that the move to sell a minority of its stake in the Dutch group would give Aviva: "The flexibility to pursue balance sheet restructuring opportunities or to explore other opportunities for growth."

It added: "Delta Lloyd would benefit from a new shareholder base supportive of the company’s growth ambitions in the Benelux region, and a public listing would help to better position Delta Lloyd ahead of anticipated consolidation in the Netherlands and Belgium."

Aviva shares slipped 4.2p to 448.5p in early deals, a fall of 0.93 per cent, despite Aviva being on course to raise more capital, and sooner, than expected.

The Governments of both Belgium and the Netherlands have taken into state ownership insurance groups such as Fortis after they were damaged in the credit crunch and are expected to sell these assets as markets recover.

Andrew Moss, Aviva's chief executive, has let it be known that Resolution is not the only insurer that can make acquisitions. Earlier this summer Mr Moss told reporters: “We know more about buying life businesses than anyone else in the UK. If there are opportunities in the market, don’t rule us out.”

Delta Lloyd, a life and general insurer and fund manager, calculates the market value of its assets at around €4 billion and it is expected its market value at flotation would be similar to this.

The move will further bolster Aviva's surplus capital following the £452 million sale of its Australian life and pensions operations to National Australia Bank and a 31 per cent cut to its first-half dividend.

Aviva said a prospectus for the float would be published later this month.

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