IAG to buy back debt

Insurer expects gearing ratio to be at the mid-point of its targeted 30-40% of capitalisation.

Insurance Australia Group (IAG) will buy back and cancel £157 million ($A286.8m) of subordinated notes. 

The Australian Prudential Regulation Authority has approved the repurchase, which is set to occur on June 13.

After the repurchase, and after IAG's acquisition of Wesfarmers' insurance underwriting business, IAG expects its gearing to be around the middle of its targeted debt to total tangible capitalisation range of 30 per cent to 40 per cent.

IAG agreed in December to buy Wesfarmers' Australian and New Zealand underwriting operations for $1.845 billion.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles