The Bank of Queensland is acquiring Virgin Money Australia including the general insurance arm for $40m.

BOQ will be able to sell VA’s travel, underwritten by Allianz Australia, and car insurance, underwritten by Auto & General Insurance, when the deal is completed at the end of the month.

As part of the deal, BOQ will obtain VA Australia’s life insurance, credit cards and superannuation business and plans to add personal loans, mortgage products and transaction accounts to its new portfolio.

VMA will act as a standalone business within BOQ.

“The acquisition of Virgin Money Australia immediately delivers increased geographic and income diversity, and allows us to fast track our existing multi-channel distribution strategy through access to an iconic brand and a business with proven capability in online customer acquisition and product distribution,” BOQ managing director and CEO Stuart Grimshaw said.