NRMA chief executive Eric Dodd told Channel Nine's Business Sunday program that a share issue was one option for raising the additional capital. "I think we have talked about A$600 million again, anything between A$300-600 million, obviously we wouldn't go to the market with an offer under A$100 million for instance," he said in an interview recorded on Thursday and broadcast on Sunday.

Members of the NRMA group voted overwhelmingly on Wednesday in favour of a key resolution which sets it firmly on the road to demutualisation and the float of its A$5 billion insurance unit, currently expected to take place in mid-July 2000.

The NRMA, which has about 1.8 million members, is now two mutuals - NRMA Ltd and NRMA Insurance Ltd.

Dodd told reporters on Wednesday no final decision had been taken on whether to raise extra capital through the float, such as by an institutional share placement. He told Channel Nine that NRMA Insurance would have about A$600 million in surplus capital when it floated, which it would use for growth, with a particular focus on financial services.

"I do think we will have to form either alliances or undertake acquisitions, not just in Australia (but) perhaps regionally as well, to achieve the goals we've set for that part of our business and the rest of our core business, the general insurance sector," he said.

The NRMA was also looking to expand interstate, particularly in Queensland where it was interested in alliances with its sister organisation, the Royal Automobile Club of Queensland (RACQ) and the listed Suncorp Metway Ltd.