QBE Insurance Group launches US$300m subordinated notes issue

QBE Insurance Group has launched a US$300 million Tier 2 subordinated notes issue, shoring up its capital position under APRA rules.

Laura Stewart

Author bio Laura Stewart is a Finance Editor at The Motley Fool, where she covers Australian and international equity markets. She joined the company in 2022, following a career transition from legal advisory work in Southeast Asia into the investment industry. Prior to her current editorial role, Laura spent three years as an Equity Analyst and Writer, producing investment research across the ASX, NYSE, and NASDAQ. Her coverage included small-cap growth companies, thematic investment ideas, and high-quality U.S.-listed businesses. Laura holds a Master of Applied Finance and brings additional expertise in accounting, taxation, and estate and wealth planning from her postgraduate studies. She also has a background in law and communications, which supports her analytical and reporting work in financial markets. Outside of work, she enjoys spending time in the Adelaide Hills with her flock of sheep. Education Laura holds a Bachelor of Laws, a Bachelor of Communication (Journalism), and a Bachelor of Commerce with majors in Accounting and Corporate Finance. In 2025, she completed a Master of Applied Finance at the University of Adelaide, receiving postgraduate awards in Accounting Concepts & Methods, Ethical Principles in Accounting & Finance, Real Estate Valuation & Investment, and Tax, Estate & Wealth Planning. Social media LinkedIn FYI – I am taking a break from social media at the moment, so this account isn’t active at the moment, but I will let you know when I rejoin. Favorite investment quote "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." — Albert Einstein

Published November 5, 2025 12:11 pm AEDT

The QBE Insurance Group (ASX: QBE) share price is in focus after the company announced it has successfully priced US$300 million of fixed-rate subordinated notes due in 2037, strengthening its capital base under the Australian Prudential Regulation Authority's (APRA) framework.

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising — Image source: Getty Images

What did QBE Insurance Group report?

Issued US$300 million of Fixed Rate Resetting Subordinated Notes maturing in November 2037
Initial fixed interest rate of 5.239% per annum, paid semi-annually until November 2032
Eligible as Tier 2 Capital under APRA's capital adequacy standards
Notes callable early by QBE (with APRA approval) from November 2032
Interest rate resets in 2032 to US Treasury five-year yield plus 1.35%

What else do investors need to know?

The subordinated notes will be convertible to QBE ordinary shares in full or part if APRA determines QBE is, or would become, non-viable. This is a standard provision under APRA's capital requirements, aimed at providing an additional capital buffer in times of stress.

QBE highlighted that investors should not expect APRA's approval for early redemption of the notes, except under specific tax or regulatory circumstances. The offer is part of QBE's strategic capital management and is targeted at institutional investors rather than the general public, consistent with broader market practices for Tier 2 instruments.

What's next for QBE Insurance Group?

QBE plans to use the proceeds to support overall funding flexibility and maintain regulatory capital strength as it pursues growth and underwriting discipline across its global portfolio. Management continues to focus on sustainable returns, efficient capital use, and maintaining a strong balance sheet in dynamic insurance markets.

Looking ahead, QBE's robust capital management is expected to help it meet regulatory demands and pursue new business opportunities, while providing resilience through ongoing market cycles.

QBE Insurance Group share price snapshot

QBE Insurance shares have risen 15% over the past 12 months, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.