Bank of Queensland has been forced to abandon the planned sale of its St Andrew's life insurance arm to Freedom Insurance Group.In a filing to the ASX on Monday, BoQ announced that the deal had fallen through after the parties could not complete the transaction before the end of 2018."The decision to terminate was mutually agreed with Freedom after it became clear that the conditions of the transaction would not be satisfied within the time limits contained in the sale agreement," the bank told the ASX."Following the termination of the agreement with Freedom, BoQ will continue to assess its strategic options in relation to St Andrew's."In the meantime, St Andrew's continues to be a strongly capitalised business that remains focused on delivering for its customers and corporate partners."BoQ's share price yesterday declined 31 cents or 3.1 per cent to A$9.43, more or less in line with the aggressive sell-off of listed major and regional banking stocks.St Andrews accounts for around 4 per cent of the bank's cash earnings.In 2017, the business generated a net profit of $8 million.Under the proposed deal, BoQ had hoped to sell the business for $65 million, which would have boosted the group's Tier One capital position by 20 basis points.Analysts believe the bank will continue to search for a buyer of the insurance arm but might be forced to delay any sale given the derating of ASX-listed financial services stocks in the recent months."We expect BOQ will maintain a preference to sell St Andrew's, though if it remains unsuccessful on this front we would expect a more complete strategic update at the upcoming first half result expected to be in April 2019," Goldman Sachs' analysts told clients in a research report.