Randall & Quilter Investment, the general insurer, is raising a minimum of US$100mln (£81.2mln) through an open offer, placing and subscription to pay down debt and fund collateral after sliding to a loss in 2021.
Losses reflected a potential US$90mln non-cash, pre-tax charge associated with impairing what it says was a structured reinsurance contract that had been recognised as an asset on the group's balance sheet.
R&Q had intended to raise the money through a deal that would have seen 23% shareholder Brickell PC Insurance acquire the business, but that deal fell through last month.
In a statement today, the insurer said approximately US$60mln will be used to fund collateral requirements and the balance to pay down debt.
Losses after tax for the year to the end of December were US$127mln.
Shares jumped 11% to 102.5p.