The insurer's shares rose as much as 3.5% on Thursday and were the top performers in the FTSE 100 blue chip index.
The life and general insurer has been moving fast to off-load businesses considered non-core in a shift in strategy under CEO Amanda Blanc, who took charge last year, to address concerns over the group's unwieldy structure.
Aviva said on Thursday it sold its Italian life insurance business to France's CNP Assurances for 543 million euros ($654.75 million) in cash and its general insurance business to Germany's Allianz for 330 million euros in cash.
Following an earlier sale, Aviva said it had raised 1.2 billion euros in total from its Italian businesses.
The company also recently sold its French business and joint venture stake in Turkey.
CEO Blanc told a media call that following the disposals, Aviva would be "in a position to make substantial return of capital to shareholders," without giving more detail.
Aviva also said it would pay down 800 million pounds in debt and expects a total debt reduction of 1.7 billion pounds in the first half, including the 800 million.
JPMorgan Cazenove analysts said there were "lots of capital returns coming", and reiterated their "overweight" rating.
Aviva has also been selling businesses in Asia though it still has joint ventures in India and China. Sources have said the group is also close to exiting Poland.
Blanc said the company was reviewing its options in Poland and joint ventures. CFO Jason Windsor said that in China Aviva would "think about alternatives, including status quo".
Operating profit of 3.2 billion pounds ($4.47 billion) beat a company-supplied consensus forecast of 2.8 billion, helped by record net flows into the insurer's UK and Ireland savings and retirement business.
Aviva said it would pay a total dividend of 21 pence per share, in line with forecasts.
($1 = 0.8293 euros)
($1 = 0.7166 pounds)
(Reporting by Carolyn Cohn; Editing by Rachel Armstrong and Jane Merriman)
By Carolyn Cohn
