Less than a week after paying out it's final 27 A cents share dividend, global insurer QBE has launched a $A1.234 billion capital raising to strengthen its balance sheet to the point where it is “demonstrably strong” to cope with the growing pressures from the COVID-19 pandemic.
Brisbane-based regional bank, Bank of Queensland has become the first Australian financial group to heed the call by the regulator, APRA for a rethink and possible pause on dividends and other capital management moves.
QBE was another to withdrew guidance yesterday, citing “extraordinarily difficult times for all stakeholders”. However, IAG shares surged more than 10% after the country’s biggest general insurer left its 2019-20 guidance in place.
Insurance giant QBE has warned that climate change poses a material threat to its business and the economy after booking a $300 million hit to revenue due to unusual weather events in the US, Europe, and Australia.
Morgan Stanley believes QBE Insurance can improve its 2021 combined operating ratio by around five percentage points versus 2018, as premium rate increases are accelerating well ahead of claims inflation.