QBE Insurance Group to redeem USD$300m Subordinated Notes in November

QBE Insurance Group to redeem USD$300 million 6.10% Subordinated Notes this November after APRA approval.

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Key points

  • QBE Insurance Group will redeem USD $300 million 6.10% Fixed Rate Subordinated Notes on November 12, 2025, following APRA's approval for full cash redemption.
  • The redemption is part of QBE's capital management strategy and does not affect existing operations or other securities; future redemptions require separate APRA approval.
  • QBE shares have gained 26% over the past year, outperforming the S&P/ASX 200 Index's 8% rise.

The QBE Insurance Group Ltd (ASX: QBE) share price is in focus after the company announced it will redeem its USD$300 million 6.10% Fixed Rate Subordinated Notes due 2045 in November. The move follows approval from APRA to proceed with the full cash redemption at principal amount plus accrued interest.

What did QBE Insurance Group report?

  • Redeeming USD300 million of 6.10% Fixed Rate Subordinated Notes (ISIN XS1311098815) issued in 2015
  • Redemption date: 12 November 2025
  • Notes to be redeemed for their principal amount plus accrued and unpaid interest
  • Redemption approved by APRA
  • Action does not imply future redemptions of other regulatory capital instruments

What else do investors need to know?

QBE's decision to redeem the notes comes as part of its ongoing capital management approach. The company notes that any future redemptions would also require prior approval from APRA and are not guaranteed.

This redemption does not impact QBE's existing operations or other outstanding regulatory capital instruments, so investors holding different securities are unaffected by this announcement.

What's next for QBE Insurance Group?

QBE will complete the redemption on 12 November 2025, paying all principal and accrued interest to noteholders. The company says there is no current intention to redeem other capital securities unless regulatory approvals are obtained.

Investors can expect QBE to maintain a disciplined approach to capital management as regulatory and market conditions evolve.

QBE Insurance Group share price snapshot

QBE Insurance shares have risen 26% over the past year, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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