Perth-based Insured Group wants to move into the wealth management advice industry to sell general insurance.

Chairman Barry Driscoll revealed the plan in a prospectus lodged with the Australian Securities and Investments Commission (ASIC) to raise $2.25 million of new capital.

“Insured Group’s next major expansionary step is to utilise its Australian financial services licences and to offer wealth management services,” he says in the prospectus.

“Following Australia’s successful emergence from the 2008 global financial crisis and the recent reforms governing financial advisers and having new opportunities offered by the joint venture [with Priority One Network Group], the board reasons this is an excellent time to offer credible, responsible tailored financial advice services.”

Insured Group owns a wealth management business – Consolidated Wealth Management – and a 51% stake in Lighthouse Financial Advisers in New Zealand.

The prospectus says Insured Group will be looking for partnerships with larger specialist financial services companies to deliver general insurance products to target markets.

This could be through another Insured Group company, Advanced Insurance Technologies, which has developed an online quoting tool called Insurance Launch Pad.

The purpose of the capital-raising is to pay off existing debts and create working capital for the group to go ahead, Mr Driscoll says.

The offer closed yesterday, but at the time this edition of insuranceNEWS.com.au was published, there was no indication from the company if it had been successful in raising the $2.25 million.

The prospectus states the capital-raising was due to close at 5pm WA time, with the allotment of new shares next Monday.

On May 25 Insured Group lodged an extension to the exposure period of the prospectus. ASIC was unable to supply a copy of this notice to insuranceNEWS.com.au and a request to Insured Group’s company secretary also didn’t produce a copy of the document.

The legal exposure period of the prospectus is 13 months after it was registered with ASIC on May 17.