Chief executive Ralph Stewart has been working on the design of the guaranteed annuity product for three years.

A capital raise was held in May to prepare for the launch of the Lifetime Income Fund, including an offer to smaller shareholders via crowdfunding website Equitise.

NZIG said more than $4.53 million in new share capital was raised.

Its application for a variable annuity life licence has been accepted by the Reserve Bank and NZIG has given a quote to trustees of a closed defined benefit super scheme to give its members access to the Lifetime Income Fund, worth $30 million.

Stewart said the decision had been made to conduct further capital raising to increase marketing and sales activity in the retail and wholesale markets as interest grew in its products.

It is offering up to 450,000 shares at $1 to existing and new shareholders. The minimum subscription is $10,000.

As part of its increased marketing activity, NZIG will employ Heathcote Investment Partners to engage with the AFA market.

The company is not going ahead with the acquisition of an existing insurance company, Pacific Life, which had a limited insurance licence.

This means it needed an extra $1.5 million in regulatory capital to meet RBNZ requirements.

That money has been raised in the founders’ holding company, Stewart Capital Holdings, from Gareth and Joanne Morgan.

Stewart said: “This is an outstanding endorsement of RIG and the opportunity it offers by a very well-known entrepreneur who strongly believes in our passion to help New Zealanders improve their lifestyles in retirement. This is the sort of investor we anticipated working with in 2017. The level of interest in our project is increasing faster than we anticipated.”

NZIG says the Lifetime Income Fund is on track to launch in November.

Stewart said there was strong wholesale interest in the product. “A recent significant corporate transaction triggered the closure of a large old defined benefit superannuation scheme. The scheme actuaries recommended to the Trustees that they consider Lifetime as an alternative for members. We have subsequently quoted for the business, which has a total scheme liability of $45 million.”