Direct insurer Freedom Insurance Group has listed on the Australian Securities Exchange after raising $15 from investors, giving a market capitalisation of $90 million.

Funds raised will help expand Freedom’s distribution and repay a $3 million loan.

CEO Keith Cohen says the capital-raising is an endorsement of the business model, based on simple products that are easy to understand, and its forecasts.

“A huge amount of work has gone into where we are today, and a public listing provides a strong platform to grow,” he said.

The insurer was formed in 2009 and the following year started distributing an income protection product underwritten by AIA Australia.

Freedom distributes death, disability and trauma cover direct and through its dealer group Spectrum Wealth Advisers, which has 273 advisers nationwide.

It also has an arrangement with mortgage broker Finsure to train and license brokers to sell life products on a general advice basis. By June 30 Spectrum had licensed 73 Finsure brokers.

In 2014 Freedom struck a deal with NobleOak and took a stake in the company, but this deal has now been rescinded, with Swiss Re the new underwriter. The reinsurer is expected to start acting for Freedom in February, although the NobleOak agreement runs until June 30.

Swiss Re will underwrite a new mortgage protection product to be distributed by Freedom.

The undisclosed stake in NobleOak is subject to review because it is no longer considered a core asset, according to the Freedom prospectus.

Freedom’s net revenue in the year to June 30 was $29.5 million, compared with $20.9 million the previous year. Upfront commissions totalled $23 million, up from $15 million. Trails were $5 million, up from $2.8 million.

The company allowed $4.3 million in the year’s accounts for clawback of commissions.

Operating expenses were $21.9 million, compared with $15.6 million the previous year.

Pre-tax profit was $6.3 million, up from $4.3 million, while the inforce annual premium book stood at $44.5 million on June 30.

Mr Cohen predicts a 42% rise in revenue this financial year to $42 million, and a 67% increase in earnings before interest and tax to $12.7 million.

On listing he has become the largest shareholder, with a 17.22% stake. Other institutional investors include Alex Waislitz’s Thorney Investments, Ashok Jacob’s Ellerston Capital and Bennelong Funds Management.