Phlavia Investimenti, formerly known as Ergo Italia, is a subsidiary of European private equity firm Cinven.
The deal was originally announced in August last year, with Cinven agreeing to pay €278m ($292m, £238m) for Old Mutual Italy.
Paul Feeney, chief executive of Old Mutual Wealth, said closing the sale “represents an important landmark” for Old Mutual Wealth as it completes the insurer’s exit from continental Europe.
“Whilst we are sorry to lose our colleagues from Old Mutual Wealth Italy, we believe their growth prospects will be enhanced under the new ownership,” he added.
Established in 1997, Old Mutual Wealth Italy is an independent unit-linked provider in the financial adviser market.
The business employs 110 people and manages €7bn for more than 53,000 affluent and high net worth customers. The post-tax adjusted operating profit for the year ended 31 December 2015 was €22m.
The Italy sale represents the “final part” of Old Mutual’s plan to split the company into four separate units by 2018, which the insurer claims will help it perform better.
The cost-cutting exercise, announced in March 2016, will see the Old Mutual separate into South African bank Nedbank, UK wealth manager Old Mutual Wealth, OM Asset Management and Old Mutual Emerging Markets.
