News: IAG Insurance Australia Group Says To Raise Up To $750 Mln

Nov 20 (Reuters) - Insurance Australia Group Ltd (IAG) :

• IAG RESPONDS TO BI TEST CASE AND ANNOUNCES CAPITAL RAISING
• ANNOUNCES CAPITAL RAISING OF UP TO $750 MILLION TO STRENGTHEN BALANCE SHEET
• IAG INTENDS TO RECOGNISE A POST-TAX PROVISION OF $865 MILLION GIVEN NSWCA'S DECISION
• RECEIVED A SMALL NUMBER OF BUSINESS INTERRUPTION-RELATED CLAIMS TO DATE
• PROVISION IS ESTIMATED TO HAVE A NET POST-TAX IMPACT ON IAG'S FY21 EARNINGS OF APPROXIMATELY $805 MILLION
• AS AT 20 NOV, IDENTIFIED OTHER ITEMS WHICH MAY BE RECOGNISED IN ITS REPORTED EARNINGS FOR SIX MONTHS
• IDENTIFIED ITEMS WITH POTENTIAL FOR PRE-TAX CHARGE OF $70 MILLION TO $90 MILLION FOR HY ENDED DEC 31
• DUE TO RECOGNITION OF BUSINESS INTERRUPTION CLAIMS PROVISION, IAG'S CET1 RATIO WOULD REDUCE TO ABOUT 0.84 TIMES PCA
• AT 31 OCTOBER, IAG HELD TOTAL REGULATORY CAPITAL OF ABOUT $4.8 BILLION
• POST CAPITAL RAISING & RECOGNITION OF ADDITIONAL BI PROVISION, CET1 RATIO TO INCREASE TO ABOUT 1.15 TIMES PCA ON PROFORMA BASIS AT 31 OCT