CBA sells insurance business to BOQ
(30 March 2010 – Australia) The Bank of Queensland has announced that it has inked an agreement with the Commonwealth Bank of Australia to acquire the insurance businesses of St Andrew’s.
Under the agreement the Bank of Queensland will acquire St Andrew’s Insurance Pty Ltd and St Andrew’s Life Insurance Pty Ltd, gaining the consumer credit insurance and life insurance products which St Andrew’s distributes through a base of financial institutions and other providers.
Bankwest, a CBA subsidiary, will continue its existing relationship with St Andrew’s through an exclusive long-term distribution agreement.
CBA will retain ownership of St Andrew’s investment, superannuation, retirement income and financial planning businesses, which are to be integrated into CBA’s Wealth Management business.
David Liddy, BOQ’s managing director, said that the acquisition of the St Andrew’s business fits within the bank’s growth strategy, including income diversification through businesses with complementary products to BOQ’s core mortgage distribution.
Bank of Queensland is already a significant customer of St Andrew’s and has a deep understanding of its business model, Mr Liddy added.
Grahame Petersen, group executive, Wealth Management, Commonwealth Bank, said that the bank believes that the sale was in the best interests and represents a good outcome for all parties, including existing St Andrew’s staff, all of whom have been offered contracts within the BoO Group.
Bankwest, a CBA subsidiary, will continue its existing relationship with St Andrew’s through an exclusive long-term distribution agreement.
CBA will retain ownership of St Andrew’s investment, superannuation, retirement income and financial planning businesses, which are to be integrated into CBA’s Wealth Management business.
David Liddy, BOQ’s managing director, said that the acquisition of the St Andrew’s business fits within the bank’s growth strategy, including income diversification through businesses with complementary products to BOQ’s core mortgage distribution.
Bank of Queensland is already a significant customer of St Andrew’s and has a deep understanding of its business model, Mr Liddy added.
Grahame Petersen, group executive, Wealth Management, Commonwealth Bank, said that the bank believes that the sale was in the best interests and represents a good outcome for all parties, including existing St Andrew’s staff, all of whom have been offered contracts within the BoO Group.
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