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.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
