Ockham Holdings sold 30% of the shares it made available under an open offer that closed last week.
The rest of the shares were taken up by institutional investors that underwrote the offer in a deal arranged by Numis Securities.
The company will use £23m to increase capacity for its principal operating subsidiary, motor insurer Highway with £3m for the running of the company.
Highway managing director Andrew Gibson was "quite pleased" with the 30% take-up.
"To raise £25m in these market conditions is very encouraging," he said.
Trading in the new shares is expected to start on 12 April.
Hardy's losses are estimated at 4% of capacity, a reduction from its original estimate of 5%.
This equates to less than £2m on its capacity for 2001.