American Savings Bank said it is selling its Bishop Insurance Agency unit to Monarch Insurance Services Inc. to increase its focus on its banking products and services.

American Savings announced a deal yesterday that will transfer ownership of Bishop, an almost-150-year-old firm, to Monarch for an undisclosed price. The transaction is to close tomorrow.

The bank bought Bishop Insurance in 2001 to provide greater benefits to customers in keeping with a trend by banks to offer insurance and investment products.

American Savings said it was entering a strategic alliance with Monarch to make sure its customers continue to receive a high level of service and products when it comes to insurance.

Monarch is a 26-year-old property and casualty insurance broker with offices in Honolulu, San Francisco, Denver and Bend, Ore.

Bishop, which offers personal and business insurance products, is the oldest of the top 10 insurance agencies in the state.

"Everyone at Monarch recognizes the reputation for service that Bishop has enjoyed for almost 150 years, and we are confident our corporate cultures will blend together well," said Mark Polivka, Monarch president and founder, in a press statement.