No 1 insurer NRMA has sold its building society for $138 million. It bought the business – with a mortgage book worth about $2 billion – from MLC in 1997, but acting CEO Ian Brown announced four months ago that it was on the market again.

The sale to HSBC Bank, announced yesterday, realises a book profit of about $50 million. Mr Brown said the proceeds of the sale will be used to retire debt.

As is becoming more common with asset sales in financial services, there was a sweetener in the deal for HSBC: it will be able to distribute cash management and term products to NRMA customers.

Mr Brown said the sale will involve some 500 staff and will allow the company to concentrate on its key areas of insurance and investment products.