Legal & General has this morning launched a 13-for-50 rights issue at 60p per share.
In a bid to raise £786m capital the UK's third largest life assurer has started trading. In morning trading L&G shares have so far dropped 2% to 112.5p.
The rights issue comes in a week after Zurich Financial Services announced plans to raise $2bn in capital. Royal & SunAlliance is also about to launch a rights issue of up £1bn to take advantage of hardening premium rates.
Despite charges being capped at 1% a year, L&G has maintained a market-leading position.
L&G's chief executive, David Prosser, has positioned the group for aggressive growth by investing heavily in computer systems.
The capital raising measure is an attempt to expand its lead in a consolidating market, according to Mr Prosser.
Today's move comes only two months after the life assurer reassured investors of its financial strength.
