Magian Mutual, which was set up in May to provide professional indemnity (PI) cover for IFAs, is set to be refinanced after hitting growth targets early.

The mutual revealed this week that it had already received 500 inquiries from IFAs and that it had orders of over £1.4m in net premium income and other work pending.

Magian initially planned to underwrite premium income of £15m in its first year. But it is now looking to boost its financial strength in early 2004.

"We are looking at a refinancing after nine months," said Magian Underwriting director Glyn Morris.

Morris said Magian had been inundated with inquiries from IFAs.

However, Morris said that it was admitting only those that were "compliance-led" and met a "quality criteria".

"We are currently turning away around 50%-60% of inquiries from IFAs," he said.

It is expected that Magian will underwrite around £20m in premiums in the next 12 months.

Magian this week appointed a board of non-executive directors to run the company.

Ex-Ernst & Young partner Peter Standish has been appointed chairman, while Keith Peacock, formerly with AIG) will handle underwriting.

Alan Cleary, previously with loss adjuster Claim Experts, will oversee claims.

Three other directors from the IFA industry have also been appointed. They are: Valerie Gaze; Steven Rimmer; and Dale Thornley.