The Bank of Queensland Ltd (BOQ) has expanded its insurance offering with the purchase of St Andrew’s Insurance (Australia) and St Andrew’s Life Insurance.

The deal was completed last week and will see BOQ pay the Commonwealth Bank $45 million for the two companies, subject to post-completion adjustments.

St Andrew’s Insurance provides a range of consumer credit insurance, life insurance and related products through corporate partners. Prior to its acquisition, St Andrew’s counted BOQ as a “major corporate partner”.

The sale does not include the St Andrew’s investments, superannuation, retirement income and financial planning businesses, which will be integrated into the Commonwealth Bank’s wealth management business.

BOQ MD David Liddy says the purchase is a “capital light” acquisition, requiring capital equivalent to less than half a year of organic growth.

BOQ will operate the St Andrew’s business as a stand-alone entity, and will maintain St Andrew’s Perth headquarters, as well as its existing presence around the country.

St Andrew’s Insurance CEO Renato Mazza will join the BOQ Group Executive team, but will operate the business independently of the broader bank.

Commonwealth Bank Group Executive Wealth Management Grahame Petersen says the St Andrew’s insurance “largely replicates an existing insurance capability within CommInsure”.