Beazley announced it has successfully completed a share placing, raising a total of £247m in new equity for the insurance group.
A total of 78,501,420 shares were placed by joint bookrunners, J.P. Morgan Securities and Numis Securities Limited, at a price of 315 pence per share.
Some directors and members of the senior management team at Beazley participated in the placing or separately subscribed for new ordinary shares, with a total of 13,085 shares subscribed to.
Together, both the placing and subscription of 78,514,505 shares raised gross proceeds of approximately £247m, and represented 15% of the existing issued ordinary share capital of Beazley prior to the equity raise.
Beazley first announced its intention to raise the new equity on 18 May, stating the new funds would “continue to support ongoing organic growth” across the group.
The announcement followed its latest first-quarter trading update, where the group forecasted a £139m payout of coronavirus-related claims, having already faced an investment loss of £45m in the three months ended 31 March.
Since the trading update, the group has also agreed an increase in its banking facility from £184m to £367m. It has subsequently drawn down a further £69m letter of credit, leaving £184m of unutilised capacity under the banking facility.
In light of the successful placing, the board has also taken the decision not to pay a first interim dividend for the six months ending 30 June 2020.
However, Beazley said it “continues to recognise the importance of capital returns to its shareholders – the company has a long track record of paying dividends and remains committed to doing so in the future”.