One Direct, a subsidiary of An Post, has agreed a deal to take over Aviva's branch-based private motor and home insurance business in Ireland.

Aviva engaged in a tender process for the sale of its general insurance branch network business recently.

After a detailed evaluation of all the responses to the tender, One Direct was selected as the preferred partner for the Aviva's business.

The proposed transfer is expected to be completed by the middle of September. 

One Direct currently sells a range of general insurance products which are underwritten by Aviva Ireland.

Under the deal, 59 Aviva staff members will move to One Direct and it is expected that some of the roles will be located in post offices near Aviva branches. One Direct will also take over a number of Aviva branch premises in the Dublin area.

Seán Egan, Aviva Ireland's chief executive, said the deal was another ''important milestone'' in the company's restructuring process. He said the transaction was influenced by the dual objectives of minimising job losses and selecting a strong business to sustain customer services.

''This is a very positive development for One Direct and for An Post and is fully in line with our stated strategy of developing new, relevant, value-for-money income streams,'' commented An Post's chief executive Donal Connell.