News: QBE UPDATE 1-Australia's QBE Insurance to raise $825 mln in capital to counter coronavirus...

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April 14 (Reuters) - Australia's second largest insurer QBE Insurance Group (QBE) said on Tuesday said it was pre-emptively boosting its capital through an equity raising to stave off the impact from the coronavirus outbreak even as it posted a strong premium growth in the first quarter.

The company is looking to raise about $750 million through an institutional placement and $75 million through a share purchase plan.

Australian firms have rushed to raise capital to cushion the blow from the coronavirus pandemic that has hurt various operations and brought others to a standstill. The trend has picked up ever since the country's corporate regulator eased some rules to make the process easier.

"The capital plan we have outlined positions us to navigate this period of extreme uncertainty with demonstrable strength and gives us the flexibility to pursue organic growth opportunities that may arise over the medium term," QBE Chief Executive Officer Pat Regan said.

QBE Insurance is conducting the placement at a price of A$8.25 per share, which represents a 9.4% discount to the stock's last close of A$9.11 on April 9.

Despite the disruption from the pandemic, the insurer posted an over 9% rise in gross written premiums in the first quarter to $4.53 billion.

QBE also said the capital raise would lift its capital to above the S&P's "AA" credit rating levels.