St Andrews Australia, HBOS Australia's Insurance and Investment arm, will now use a white label version of Aviva's Navigator investment platform to administer its clients investments. It is anticipated more than A$1.5 billion will be under this badge when the contract is reviewed in five years.

St Andrews has 30 financial advisers now located in Western Australia, Victoria and New South Wales, who will be provided with Navigator's n-link technology, providing superior financial planning, research and client management systems. In addition to these 30 planners, St Andrews has 14 sales and training staff who train BankWest staff on how to sell low cost direct life and investment products. It is anticipated St Andrews will recruit an additional 20 financial advisers over the course of this year.

Announcing the alliance, Aviva chief executive officer Allan Griffiths said this was an exciting opportunity for both companies, given the complementary nature of what each party has to offer.

"Aviva and HBOS share similar goals of delivering outperforming products and tools to the end consumer. Under our alliance, St Andrews customers will be treated to some of the best products and services the Australian financial services industry has to offer."

Aviva chief operating officer Grant Salmon said both companies had enjoyed enormous success in bancassurance across Europe. HBOS plc derives 20% of it’s A$11 billion profit from insurance and investment products and some of Aviva Plc’s fastest growing markets are founded on bancassurance relationships.

"Aviva and HBOS understand each other’s business models well. We are complementary in our skills and have a track record of cohesiveness. One of the great aspects of this alliance is we both bring excellence to the table, and are culturally aligned.

"We are not a bank and we don’t control distribution. We are a product manufacturer and a funds administration provider and we recognise HBOS is the expert retailer. I think the success of this operation both in Australia and around the world over the last 10 years has proven HBOS understand distribution. HBOS and Aviva will continue to leverage off their global leadership and experience in bancassurance partnerships.

"I expect that HBOS will become widely recognised around Australia as a successful bancassurer. The recent acquisition of the RACV's Financial Services business gives HBOS a significant presence in the local market, and Aviva will be proud to partner them.

"We see this as the start of a long term, mutually beneficial relationship between two very well positioned partners," said Grant Salmon.

Aviva recently announced it had secured a A$500 million badging agreement with Queensland-based dealer group Infocus, which will be run on the A$12 billion Navigator platform.

Professional Investment Holdings will shortly ask its members to approve an increase in Aviva’s stake to 26 per cent.