The Bank of Queensland has announced that it is selling St Andrew’s Insurance for $23 million.
The bank has announced to the Australian Securities Exchange that the insurance business is being sold to investment company, Farmcove Investment Holdings.
It said the sale was consistent with the Bank of Queensland’s refreshed strategy to deliver group simplification benefits.
Commenting on the transaction, BOQ managing director, George Frazis said the sale of St Andrew’s represented an important strategic milestone for the bank.
“We are delighted to have secured a buyer that has a long-term vision for the business which includes meeting the continued obligations of policyholders,” he said. “The divestment enables us to focus on our niche customer segments while simplifying our business model.”
Farmcove managing director, Matt Lancaster said that the company had a long horizon in mind with respect to the investment in St Andrew’s.
“St Andrew’s has insured more than 600,000 Australians over its two decade history and we look forward to seeing the company deliver simple and cost effective insurance options for more Australians over the coming decades as an independent, Australian-owned competitor,” he said.
