QBE to sell assets, $750M in shares as profit drops

(Bloomberg) — QBE Insurance Group Ltd. plans to raise about $750 million in a share placement and sell assets including part of its lenders’ mortgage insurance business in Australia after reporting an 18% drop in earnings.

The insurer, which earns about three quarters of its premiums outside Australia and New Zealand, will sell $600 million in shares to institutions and raise about $150 million through a share purchase plan, it said in a regulatory filing. QBE will also sell its U.S. agency business and seek partners for two Australian equivalents, it said. The proposals, along with a debt refinancing, will raise about $1.5 billion, chief executive officer John Neal said in a call with reporters.