Aviva declined to put a price tag on the sale, but Annie Lee, head of investor relations at Taiwan's First Financial, said Aviva sold its share in the joint venture, First Aviva Life, for $1.
The sale enables Aviva to withdraw its capital from the business, following low returns after the financial crisis, she added.
The company said a strategic review of the Tawain joint venture found that it was "not central to the group's strategy to focus on markets where it can achieve scale and profitability or have a distinct competitive advantage".
Also, the insurer this year sold its stake in three Spanish joint ventures, its Italian joint venture and part of its French business, as it tries to focus on core markets including the United Kingdom and Canada.
It would also look at its Indian joint venture with Dabur Invest Corp.
The insurer also said that the transaction, which is expected to be completed in 2018, has a negligible impact on its net assets, solvency II capital position-a key metric of financial stability for insurers-and operating profit.
The group had previously considered exiting Taiwan in 2010 and 2012, but decided against the move due to opposition from regulators.
As of 08:51 BST, Aviva's share price had lost 0.18 percent to 499.10p, slightly outperforming the broader United Kingdom market, with the benchmark FTSE 100 index now standing 0.38 percent lower at 7,527.71 points.