Last month, QBE Insurance Group proposed revisions to the terms of its US$400 million perpetual fixed rate capital notes; now, according to the insurer, the capital notes will be reclassified out of borrowings and into equity.

QBE, which issued a consent solicitation, announced that holders of the capital notes have approved the amendments and that the conditions to the corresponding extraordinary resolution taking effect have been satisfied.

Read more: QBE proposes amendments to capital notes

The proposed changes, which are now effective, are designed to align the loss absorption mechanism and the accounting equity treatment of the capital notes with the US$500 million perpetual fixed rate resetting capital notes issued by the insurance group in May.

Meanwhile applicable consent fees in connection with the consent solicitation were paid on July 17.