Stewart says the group aimed to raise $2.5 million and ended up accepting $3.4 million. This new capital would be used to meet regulatory requirements and fund new business.
He says it will enable the group to write up to $80 million of new variable annuities each year.
RIG is experiencing significant demand at the moment and, as reported by Good Returns earlier, and exceeded sales forecasts in November and December on the back of falling interest rates.
In the last quarter of 2019 sales exceeded plan by 140% or nearly $30 million.
This demand put the firm below its required regulatory capital levels, but following this capital raise they are well above the required levels.
"The business has now passed its early establishment stages and must industrialise and improve systems and process to manage larger sales volumes," Stewart says.
He says the other new development is that the company has entered into a new unconditional long term funding facility with Australian firm Leap Capital.
Leap have provided an initial facility of $2.5 million.
Stewart says this will allow the company to pursue wholesale deals and there are a number "on the table" at the moment.
He expects to add reinsurance to the business this year "to strengthen our capital base against a strong background of sales."
The next step for the business is to seek a listing on the NZX. Stewart says work is starting on that and he hopes to achieve it in about 15 months time.
RIG is also looking to launch a home equity release product later this year.
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