M and A
BOQ Buys Insurance Units From Commonwealth Bank

Bank of Queensland has announced plans to buy two of St
Andrew's Insurance businesses from
Commonwealth Banking Group for an undisclosed sum.
The sale of
St Andrews Insurance (Australia) Pty and
St Andrews Life Insurance Pty Ltd was welcomed by
Graham Petersen, CBA's group executive for wealth management,
who said that the transaction represents a good outcome for al
parties, including existing St Andrews Insurance staff. All
employees under the company will be offered employment contracts
within the BOQ Group.
Following the acquition, BOQ will operate St Andrew's as a
stand-alone entity. It will maintain the latter's Perth office
and its other operations across Australia, BOQ said in a
statement.
The buyout does not cover St Andrews Life Insurance's
investments, superannuation, retirement income, and financial
planning businesses, as they are incorporated exclusively by
CBA's wealth management unit.
"St Andrew's insurance largely replicates an existing insurance
capability within CommInsure and the sale avoid the complexities
and costs of integrating the two insurance business," commented
Petersen.
St Andrew's has an annual gross written premium of A$75 million
and has around 165,000 policyholders. Final details and
regulatory approvals are expected to be ironed out by July.