QBE to raise $825m in capital to stave off impact from coronavirus

Written by Adam Cadle

14/04/2020

Australia's second largest insurer, QBE Insurance Group, is pre-emptively boosting its capital through an equity raising to stave off the impact from the coronavirus outbreak .

The company is looking to raise around $750m through an institutional placement and $75m through a share purchase plan.

"The capital plan we have outlined positions us to navigate this period of extreme uncertainty with demonstrable strength and gives us the flexibility to pursue organic growth opportunities that may arise over the medium term," QBE Chief Executive Officer Pat Regan said.

QBE Insurance is conducting the placement at a price of A$8.25 per share.

On 30 April, QBE said it had withdrawn its 2020 financial targets in light of the “unprecedented COVID-19 pandemic and uncertain economic and investment market outlook”.

Net investment returns were forecast to rise from 2.5% to 3% and the combined operating ratio from 93.5% to 95.5%.

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