Loss-making listed underwriting agency Ensurance is confident it can convince investors to pump in more money.

The company is in “advanced discussions” with a number of high-net-worth and strategic investors, it says in a letter to the Australian Securities Exchange (ASX).

It has also secured continued unconditional financial support from a major shareholder.

The ASX asked the company to explain its financial state after its March investor update projected negative operating cashflow this quarter will blow out to $2 million from $936,000.

The business had about $1.47 million in cash holdings at the end of March.

“It is possible to conclude, based on the information in the [March update], that if [Ensurance] were to continue to expend cash at the rate indicated… [the business] may not have sufficient cash to continue funding its operations,” the ASX said.

But Ensurance has reassured investors the business is sound.

“The company is confident it will be able to continue its operations and meet its business objectives,” Ensurance told the ASX last week.

“To date, the company has been successful in raising capital through the issue of both debt and equity instruments and is confident in its ability to raise further capital to support its growth plans into the future.”

Ensurance reported an $8.7 million loss last financial year, which it partly attributed to costs related to its UK expansion. It has in recent months announced a number of new products here and in the UK, where it has made significant investment.