Legal & General (L&G) is seeking to raise £786 million sterling through a rights issue to shore up a balance sheet that has been hit by stock market falls.
Shareholders are being offered 13 shares for every 50 they hold at 60p each.
The life insurer says it will use the cash to finance its business growth and keep up its "progressive dividend policy".
L&G says the rights issue represents 13.5 per cent of its current market capitalisation.
Importantly, the cash call will add 2.4 per cent to its free asset ratio - a measure of the group's solvency - and enable the group to increase to generate further economies of scale.
The company expects the British life and pensions and retail investment market to grow while there will be fewer companies operating.
PA