First Indiana Bank has sold its insurance subsidiary to a company that already owns about 22% of its holding company, First Indiana Corp.

The $1.5 billion-asset federal savings bank sold One Insurance Agency and parent One Investment Corp. to the Somerset Group Inc. Terms were not disclosed.

"Somerset has the physical and the human resources to put behind taking the insurance investment company up to the next level," said Kenneth L. Turchi, First Indiana's senior vice president. "We'll be able to benefit from that."

Somerset, which sold its construction operations in January to focus on financial services, will continue to provide non-FDIC-insured investment and insurance products, as well as investment counseling, to the bank's customers.

First Indiana will earn fee income for referrals to the agency.

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