Insurance giant QBE is embarking on a $US825 million ($A1.3 billion) raising to build a buffer against the impacts of the coronavirus pandemic.
The company, which also said premium growth had been strong in the first quarter, is the latest in a growing list of ASX-listed firms to tap shareholders for cash amid virus-driven uncertainty.
Similar moves have been made by Cochlear, Webjet, Flight Centre, Oil Search, Reece, Kathmandu and oOh!media in recent weeks.
QBE's raising announced today includes a fully underwritten $1.17 billion institutional placement at $8.25 per share, a 9.4 per cent discount to the last closing price of $9.11 on Thursday.
QBE will attempt to raise a further $117 million through a non-underwritten share purchase plan.
Shares in QBE Insurance Group have lost 29.27 per cent in 2020 so far against a virus-fuelled 20 per cent decline for the benchmark ASX 200.
The company trimmed its final dividend from 28 cents to 27 cents in February after a summer of bushfires that ravaged Australia, and unusually wet spring weather that affected US crop insurance.
Gross written premiums for 2019 fell 1.6 per cent, or $US185 million, to $US13.44 billion.
Despite recent disruption caused by the COVID-19 pandemic, QBE said insurance trading conditions across the group strengthened during the first quarter.
Group-wide premium rate increases averaged 8.0 per cent - up from 4.0 per cent a year ago - including strong premium rate momentum across all divisions, particularly in North America and international.
Gross written premium increased by more than 9.0 per cent to $US4.5 billion ($A7.04 billion), reflecting premium rate increases coupled with solid volume growth assisted by improved retention in every division.
Last week QBE named AXA XL's Jason Harris as incoming chief executive of international operations after Richard Pryce decided to retire.
Mr Harris is chief executive, global property and casualty, at AXA XL and will remain in London when he takes the QBE role later this year.
He will report to group chief executive Pat Regan.
By AAP
