QBE Insurance Group, Australia's biggest insurer by premium income, announced plans to partially float its mortgage insurance business and a $750 million (448.45 million pound) capital raising as it posted an 18 percent drop in first-half net profit.
QBE, which has been grappling with hefty claims because of a range of adverse weather events in North America, plans to cut $500 million of convertible subordinated debt through the $750 million share placement.
It also plans asset sales and a partial share offer next year of mortgage insurer QBE LMI, which had $1.2 billion in assets at the end of June.
The company will raise $700 million in Tier-II debt, mainly to replace senior debt.
"When executed, these initiatives deliver significant additional cash and capital resources that will substantially improve the group's financial flexibility and ability to better withstand a reasonable range of downside scenarios," the insurer said in a statement.