Bank of Queensland is reportedly mulling the sale of its insurance arm, St Andrews Insurance.
The bank is looking to offload the insurance unit which provides consumer credit and life insurance products, AFR.com has reported.
The Brisbane-based bank purchased St Andrews from Commonwealth Bank in 2010 and has sought advice from Citigroup on the sale, the report continued.
The move follows reports that Japanese insurance powerhouse MS&AD was weighing up a deal for the wealth management arm of ANZ Bank as Australian firms look to drop non-core assets.
The AFR reported that Bank of Queensland has been mulling the decision for the past six to twelve months as Citi have continually looked at the merits of the transaction.
When Bank of Queensland purchased the unit, it had annual gross written premiums (GWP) of $75 million with 165,000 policyholders.
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