Insurance Australia Group Ltd. announced and priced its A$450 million issuance of subordinated debt maturing in June 2045.

The debt qualifies as Tier 2 capital under the Australian Prudential Regulation Authority's capital adequacy framework for general insurers.

The securities will pay investors interest quarterly at a floating rate equal to a three-month market rate, plus a margin of 2.35% per annum. The company can redeem the securities at face value on payment dates between June 2025 and June 2026, and at any time for certain tax and regulatory events.

If not redeemed, converted or written off beforehand, the securities may be converted into fully paid ordinary shares at the option of holders on certain dates from June 2028.