In order to include more muscle to its life insurance business, the Bank of Queensland (BoQ) has decided that it will buy out St Andrews insurance business from Commonwealth Bank. It has already signed a deal with the bank.

Through this deal, BoQ wants to increase its presence in the area of consumer credit insurance segment. No details about the money involved in the deal were given.

St Andrews came to Commonwealth Bank in 2008 after staying with BankWest. And even after the deal, BankWest will continue with its process of selling products under the name of St Andrews. This is because of signing of the exclusive long-term distribution between the two parties.

Talking about the whole deal, David Liddy, CEO of BoQ said that the buyout satisfies all the requirements of its growth strategy. This, besides giving more outlets and customers, would also help in income diversification by adding to its core business of mortgage business other products.

As of now, CommonWealth Bank is already existent in the life insurance and general insurance segment, with large market share. The sale would help it to focus on its core even more.