INSURANCE ARM FOR BOQ

Written on the 15 April 2010

INSURANCE ARM FOR BOQ

BANK of Queensland (BOQ) will continue to boost its presence and capital intensity with the planned purchase of Western Australiabased St Andrew’s insurance business from the Commonwealth Bank (CBA).

BOQ managing director David Liddy (pictured) says the insurance company has 165,000 policy holders with annual gross written premiums of $75 million.

“The acquisition of the St Andrew’s business fits within the BOQ growth strategy, including income diversification through businesses with complementary products to our core mortgage distribution,” says Liddy.

“The majority of St Andrew’s premiums are in credit protection products, addressing a significant customer need that has been growing in light of the GFC and which is aligned to BOQ’s housing and SME target segments.

“The acquisition supports the bank’s objective of improving our position relative to the majors in terms of interest to noninterest income split.”

The transaction is due for completion in July and will not include St Andrew’s investments, retirement income, financial planning and superannuation businesses.

“It will contribute to diversification of our income streams and is expected to have a positive impact on our return on equity from FY11,” says Liddy.

“This is a true bolt-on acquisition, in keeping with our existing strategy, and the capital requirements are within our existing footprint. The capital impact is less than half a year of organic growth impact.”

Commonwealth Bank group executive for wealth management Grahame Petersen, says the sale is in the best interests of both parties, as well as existing St Andrew’s employees.

“BOQ intends to operate St Andrew’s insurance as a standalone operation utilising existing systems and people.”

BOQ recently signed an exclusivity agreement to conduct due diligence for a potential purchase of CIT Group Australia and New Zealand, but the bank declined to comment at this stage.


Latest News

IF YOU LOSE YOUR MOJO, YOU LOSE YOUR BUSINESS: GLEN RICHARDS

HE'S one of the "sharks" on the hit show Shark Tank and Dr Glen Richards deals with startups and sca...

MEET THE MELBOURNE ACCELERATOR PROGRAM BUILDING THE FUTURE OF CYBER SECURITY STARTUPS

IN the wake of the WannaCry ransomware attack, companies are more often considering how personal data is protected...

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

Related News

IF YOU LOSE YOUR MOJO, YOU LOSE YOUR BUSINESS: GLEN RICHARDS

HE'S one of the "sharks" on the hit show Shark Tank and Dr Glen Richards deals with startups and sca...

FURNITURE RENTAL GROUP TO PAY $100,000 TO VULNERABLE REGIONAL CUSTOMERS

WHITE goods and furniture rental company, The Rental Guys, will refund regional customers $100,000 after the Austr...

MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the strugg...

BELLAMY'S SHARES TANK AFTER TRADING HALT IS LIFTED

SHARES in infant formula maker Bellamy's Australia (ASX: BAL) plummeted 11 per cent in early trade on Thursday...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter