Aviva renews Santander general insurance deal

LONDON Aug 20 (Reuters) - Insurer Aviva (AV.L), which has rejected a 5 billion pound ($7.8 billion) bid approach from rival RSA (RSA.L) for some of its general insurance units, has renewed an insurance deal with Spanish bank Santander (SAN.MC).

Aviva, which has said it has no plans to sell its core general insurance divisions, said on Friday it had won a competitive tender for the redistribution of household insurance products to Santander.

Its new deal with Santander will run for three years from the beginning of 2011.

"This win underlines Aviva's position as the leading general insurer in the UK and the quality of our offer to banking partners," David McMillan, chief executive of Aviva general insurance, said in a statement. (Reporting by Sudip Kar-Gupta; Editing by David Holmes) ($1=.6431 Pound)