Queensland-based Regional Insurance Brokers has bought The Rock Building Society’s commercial and rural insurance business for $3.25 million.

The building society is also looking to move its domestic and personal insurance business to an agency arrangement, CEO Stuart McDonald says.

“We are going through the process of selecting an underwriter for this business,” he told insuranceNEWS.com.au.

“We have had quite a few responses and the negotiations are well advanced. I would expect to make an announcement in the next couple of weeks.”

The change to the building society’s insurance business comes after a review of its operations.

Mr McDonald says the society will now concentrate on deposit-taking business and the new personal insurance agency.

“This allows the society to focus on providing personal products and services within the finance and insurance sectors,” he said.

“It is expected this focus and subsequent growth will assist in improving the cost to income ratio to approximately 70%.”

Policy terms and condition of commercial and rural insurance customers will not change when the business moves to Regional Insurance Brokers, Mr McDonald says.

The sale will deliver The Rock a pre-tax profit of $1.4 million and will allow an identical amount of regulatory capital to be released.

Regional Insurance Brokers MD Jared Parkinson could not be contacted for comment before the insuranceNEWS.com.au deadline today.