QBE Insurance Group has issued 20-year zero coupon senior convertible securities to institutional investors, raising $530 million net after expenses.

The proceeds will assist repayment of the bridge facility for the acquisition of ING Australia’s general insurance assets, including QBE Mercantile Mutual, and the funding of more capital required by Lloyd’s for the 2005 underwriting year.

CEO Frank O’Halloran says the securities will provide a natural hedge for the substantial shareholder funds in the company’s US operations.