Hollard Insurance will retain ownership of pet, life, health and funeral insurance distributor Greenstone after last week shelving an initial public offering for the company.

Fund managers baulked at the indicative price of $2-$2.50 per share that would raise $810-$984 million.

Greenstone had more than 350,000 inforce policies and 310,000 individual customers at December 31, according to the float prospectus.

The company expects a net profit of $60.4 million this financial year on gross written premium of $130.3 million, and a profit of $90.3 million in 2015/16. Profit last financial year was $45.2 million.

Greenstone has about 456 full-time equivalent staff.

Reports say institutional investors were concerned at the amount of float proceeds being paid to founding shareholders – money that would not be reinvested in the company.

Hollard planned to reduce its stake in Greenstone to about 32% and would have taken $589.1 million from the float. Another $249.8 million would have been paid to Hollard Financial Services co-founder Gavin Donnelly.