Australia:Bank of Queensland to sell insurance unit

Bank of Queensland (BOQ) yesterday announced that it has entered into an agreement to sell St Andrew's Insurance to Farmcove Investment Holdings for A$23m ($16.5m).

The sale is consistent with BOQ’s refreshed strategy announced in February 2020, delivering group simplification benefits and is aligned with BOQ’s focus on its five core strategic pillars, the bank said in a statement.

Managing director and CEO George Frazis said, “The sale of St Andrew’s represents an important strategic milestone for BOQ. 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. The divestment enables us to focus on our niche customer segments while simplifying our business model.”

Farmcove managing director Matt Lancaster said, "We look at our investment in St Andrew's with a long horizon in mind. 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 solutions for more Australians over the coming decades as an independent, Australian owned competitor in the insurance marketplace."

Farmcove is a private investment vehicle controlled by Matt Lancaster, who has 25 years of experience in finance and investment in Australia and internationally.

Completion of the transaction, is expected to occur before 31 August 2021, the end of the current financial year, is subject to certain conditions, including regulatory approval from APRA.

Source: Asia Insurance Review

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