Bank of Queensland’s (BOQ) $40 million acquisition of Virgin Money Australia (VMA) has raised questions over Virgin’s plan to introduce more general insurance products.

Last month outgoing Virgin Money MD David Curneen told insuranceNEWS.com.au the company would soon sell home and contents cover – but he did not reveal a date for the launch.

Now BOQ says it is developing “a detailed business plan for Virgin Money” but will give no further details until the acquisition is completed, probably at the end of this month.

“We’re excited about the opportunities to add to Virgin Money’s product range… this is one of the things that attracted us to the business,” a BOQ spokesman said. 

Virgin Money sells car, life, income protection and travel insurance in Australia. It has gross written premium of $20 million.

It will continue to operate as a stand-alone business under the deal, with former Colonial First State CEO Brian Bissaker replacing Mr Curneen, who was appointed MD in February after acting in the role for a year.

Mr Curneen will stay on as a consultant for an undisclosed period.

BOQ sells general insurance products including motor, home and contents, travel and landlords’ cover, which are underwritten by Suncorp subsidiary Vero.

VMA’s relationships with Allianz, which underwrites its travel insurance, and Auto & General, which underwrites motor cover, will not be affected, BOQ says.

“Following the transaction, VMA will continue to offer Virgin Money-branded credit cards, savings accounts, life and general insurance and superannuation products through existing partnerships, in the same way it does today.”

The acquisition gives BOQ a larger distribution footprint and access to a wider range of customers, especially younger people, the bank’s MD and CEO Stuart Grimshaw says.