QBE has completed its $US750 million ($1.2 billion) equity placement and will tomorrow open a retail share purchase plan as part of a capital-raising to strengthen its defences through current economic and market uncertainty.

The insurer says “significant interest” from domestic and offshore investors in the institutional placement has seen 145.5 million shares issued today at a price of $8.25.

“We see the success of the equity-raising as a clear endorsement of our capital plan to bolster the group’s capital, reduce gearing and improve earnings resilience,” QBE Group CEO Pat Regan said.

The retail offer, which will be open until May 11, aims to raise up to $US75 million ($118 million).

Ratings companies Moody’s and S&P say the raising will place QBE in a stronger position to counter the potential effects of the COVID-19 outbreak.

“The capital-raising is credit positive for QBE because it will bolster its capital position and provide an additional buffer against the potential negative effects of an economic slowdown and higher investment market volatility resulting from the disruption caused by the coronavirus outbreak,” Moody’s says.

QBE last week reported strengthened insurance trading conditions in the first quarter, with underlying gross written premium (GWP) up more than 9% to $US4.533 billion ($7.1 billion).

Group-wise premium rate increases averaged 8%, up from 4% a year earlier, driven by momentum in all divisions but especially in North America and International.

The company sees only a “modest” GWP virus impact this year on its broader portfolio, excluding trade credit and lenders mortgage insurance where QBE has taken steps to reduce its exposure.

QBE has also announced that Axa XL executive Jason Harris will become its new London-based International CEO in the fourth quarter, taking over from Richard Pryce, who plans to retire.

Mr Harris was Axa XL’s CEO for global property and casualty, overseeing financial lines, construction and engineering. Before Axa XL, he worked in senior roles at Chubb and AIG.