Another bank, this time the Bank of Queensland, is getting out of life insurance.
FIG chief executive and managing director Keith Cohen said acquiring St Andrew's was a unique opportunity to expand manufacturing and distribution, while establishing underwriting capability and accelerating diversification into a broader range of insurance products.
Net interest margins, which compare banks' total funding costs with what they charge for loans, widened by 1 basis point to 1.97 per cent, while its charges for impaired loans slumped 19 per cent, also helping the bottom line.
The remaining cash proceeds of around $30 million will be paid by Freedom as consideration for the acquisition of the share capital of St Andrew's, BOQ said.
"These changing conditions now mean St Andrew's is a better long-term strategic fit for Freedom" he said.
Mr Sutton said BOQ is building out its business banking in higher growth sectors of the economy and opening up new retail channels. In December, the ANZ Bank sold its insurance arm for $2.85 billion.
The specialist insurance solution provider offers general, life and credit insurance through its partner Vero Insurance.
"Freedom is looking forward to working with Bank of Queensland and continuing to protect its customers, supported by its position as one of Australia's most respected banks with a widely-recognised service culture", he says.
The transaction is expected to complete in the second half of 2018.