IAG prices A$350m wholesale subordinated note issue

Insurance Australia Group Limited (IAG) today announced the successful pricing of A$350 million in securities through a wholesale subordinated note offering. The securities, first announced on September 17, 2025, are scheduled for issuance on September 24, 2025, pending customary conditions.

Upon issue, these subordinated notes are anticipated to qualify as Tier 2 Capital under the Australian Prudential Regulation Authority's (APRA) capital adequacy framework for general insurers. The A$350 million Tier 2 issue will offer investors interest on a quarterly basis, calculated at a floating rate equivalent to the three-month market rate (currently BBSW) plus a margin of 1.75% per annum.

This announcement was authorized by IAG's chief financial officer. The company is the parent of a general insurance group operating in Australia and New Zealand, underwriting over A$17 billion in premiums annually across various brands.