QBE has followed Genworth in announcing plans to float its LMI arm as profits in other areas of the business falter.
The global insurance company saw an 18% decline in profits over the six months to June, and said it would partially float its LMI arm. The IPO is expected to take place sometime in 2015.
“QBE LMI’s results have been outstanding and are expected to remain so for the foreseeable future,” QBE Group CEO John Neal said.
The IPO will help the insurance giant pay down debt and raise capital. The move comes on the heels of a similar decision by Genworth to float its Australian LMI business. Genworth raised $583m by selling of a chunk of its LMO arm in May.