JP Morgan Chase & Co is selling Chase Insurance, its life insurance and annuity underwriting arm, to Protective Life Corporation for $1.2 billion.

The New York-based bank said the sale should close in the third quarter and have no material effect on earnings. Chase will retain its debt-protection business and continue to distribute life and annuity products through its branch network.

Charles Scharf, CEO of Chase’s retail financial services, said: With the merger of Chase and Bank One, we reviewed all our businesses and concluded that insurance underwriting does not have the same scale as our core banking businesses.