Float of QBE Mortgage Insurer

Interesting news from QBE results today. they intend partially floating their mortgage insurer similar to Genworth. Refer announcement below:
In addition to non-core asset sales, we have decided to partially IPO our Austra

lian lenders’
mortgage insurance business. While allowing QBE to retain a material exposure to this highly
profitable and well-positioned mortgage insurer, the IPO will provide QBE LMI with a broader
shareholder base and funding flexibility more suitable for a business with ongoing and strong
growth ambitions.
As at 30 June 2014, the net tangible assets of QBE LMI were approximately $1.2 billion.
The IPO is targeted to take place in 2015.
John Neal said: “QBE LMI’s results have been outs

tanding and are expected to remain so for
the foreseeable future. The capital intensity of this business led us to purchase additional
reinsurance protection to support the business’ growth plans

, however, with the longer term in
mind, the introduction of third party shareholders offers QBE LMI enhanced capital flexibility to
support its growth ambition