Edinburgh-based insurer Standard Life has sold its asset management unit in Canada to Manulife as part of a broader sale of its Canadian businesses, striking an international fund distribution agreement in the process.

As part of the £2.2 billion deal, Standard Life will offload its Canadian insurance, long-term savings and retirement and fund management operations. The deal announced late Wednesday will also see Canada's Manulife distribute Standard Life Investment funds in the US, Canada and Asia through a so-called "global collaboration agreement".