The new parent company of Towergate aims to raise £890 million of debt to fund two takeovers and restructure its finances - weeks after announcing redundancies at its Kent headquarters.

KIRS Group, a £500 million super group of insurance companies created earlier this month, is aiming to raise £800 million in new bonds alongside a new £90 million finance agreement with its bank, known as a revolving credit facility.

Towergate’s backers HPS Investment Partners and Madison Dearborn Partners combined it with sister companies Autonet, Chase Templeton, Direct Group and Price Forbes to create the new business generating £2.8 billion of gross written premiums.

It intends to use its new investors’ cash to refinance its existing debt.

Towergate was rescued by a group of its bondholders in 2015, who took control of the company in exchange for reducing debts of about £1 billion to about £380 million and injecting about £125 million in cash.

Since then it has returned to a firmer financial footing, reporting in April its underlying profitability grew 12% to £842 million last year.

Days earlier, 67 job losses at its Maidstone headquarters were revealed.

The new bond issue will also be used to finance the previously announced acquisitions of Direct Group and Chase Templeton as part of the creation of the new KIRS Group.

Chairman John Tiner said: “The management team has held a number of successful meetings with potential and existing investors globally over the course of the last couple of weeks.

“The response to the creation of the KIRS Group, given its ability to broaden its services to clients and provide a platform for further expansion, has been positive.”

Chief executive David Ross added: “The unveiling of the KIRS vision is proving to be the momentous shake up of UK general insurance we always envisioned it would.

“During these early, critical days of this group, we are delighted by the feedback and support we have had from our people, peers and industry at large, all of whom have welcomed the news.”