QBE plans A$1.3bn capital raise to navigate COVID-19 uncertainty
Australia's QBE Insurance Group has reportedly launched a $825 million (A$1.3 billion) capital raise that it hopes will position the company to navigate through the period of "extreme uncertainty" amid COVID-19.
The capital would come from a $750 million institutional and $75 million retail share purchase plan, which will increase the insurer's total shares by more than 11 per cent.
"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's chief executive Pat Regan said in a statement.
Earlier this month, the re/insurer withdrew its financial targets for 2020, in light of the unprecedented COVID-19 pandemic and uncertain economic and investment market outlook. The company, however, stated that its capital position and liquidity are strong, and it will continue to implement its business continuity plans to ensure services remain available to business partners and customers.
“These are extraordinarily difficult times for all of our stakeholders: our customers, our broker partners, our staff, our shareholders and the community at large," Regan had said. "Despite the obvious and extreme disruption to normal business practices, our priority is to maintain the health and wellbeing of our staff and continue to support our customers in this time of need.”
