Less than a year after its launch, Club Life has reached $2 million in annual premium sales and has just closed a share issue that will see advisers take a 10% stake in the insurance company.

The share issue was open to advisers who did business with Club Life in its first half year of business.

Shares worth about 10% of the company will shortly be issued at $1.40 each, a 7c discount to their independently estimated value in December.

Cornerstone shareholder Hellaby Holdings, which underwrote the issue, will maintain its stake at 66%, Club Life chief executive Naomi Ballantyne says. None of the other founding shareholders took part in the issue, meaning their stakes will reduce slightly.

Hellaby’s decision to stay at 66%, the minimum holding for it to make use of Club Life’s tax losses, is a vote of confidence in Club Life, Ballantyne says.

The insurer reached the $2 million sales milestone in mid-February, and the mix of products being sold is pleasing.

"We didn’t want to get too much disability income cover exposure because that has been a problem for the industry. Disability income is only about 20% of our book."

The company’s strongholds are Auckland, where it is based, and the South Island. Ballantyne puts the southern support down to existing relationships with brokers.

"Many of us came from Sovereign and already had strong relationships with a number of advisers."

Ballantyne, herself ex-Sovereign, says much of Club Life’s business is likely to have come from her former employer.

"Sovereign is the largest company and I guess they are the ones we compete most directly with."