Zurich UK has sold its retail wealth business to Embark Group for an undisclosed sum.
As part of the deal, Zurich and Embark have entered into a five-year partnership to distribute digital life and protection products through Embark's technology channels.
The transaction will bring around £11bn assets under administration and an advised book of more than 130,000 clients to Embark.
"This acquisition is perfectly aligned to our growth strategy and duly establishes Embark as a significant player in the UK retirement and savings market"
The addition of an "extensive distribution capability" with strong reach into the adviser community, will also be valuable in driving future growth, the company said.
As part of the transaction, for which no price has been disclosed, Embark is also buying Zurich's authorised corporate director and investment services businesses.
Phil Smith, chief executive of Embark Group, said: "This acquisition is perfectly aligned to our growth strategy and duly establishes Embark as a significant player in the UK retirement and savings market.
"The deal brings considerable assets, demonstrable distribution and investment capabilities, and most importantly one of the best teams in the industry to Embark. We are also excited by the potential of our new digital partnership with Zurich UK, and the future innovations we will bring to the market through it."
Jim Sykes, Zurich's head of UK life. said: "This is an excellent outcome for all parties. Although our wealth platform is a strong and successful business, we believe the needs of customers and advisers would be better served by an owner that is focused on investing in this specialist area.
"Embark is ideally placed to take the platform to the next stage in its development. In turn, this allows us to focus our resources on our protection business where we see the greatest growth opportunities. We are excited by our new retail protection partnership with Embark, which is a further signal of our intent in this market."
Embark's platform business will have assets of £33bn and 300,000 consumer clients after the Zurich deal is completed.