Randall & Quilter Ltd (LON:RQIH) is raising up to £107mln to take advantage of what the insurer says are very favourable conditions currently.
Some £100mln will come from a placing at 153p with up to a further £7mln from an open offer at the same price.
Ken Randall, chairman and chief executive, said the money would strengthen the AM Best credit and financial strength ratings of the Accredited companies and boost its balance sheet after the spate of acquisitions last year.
A confluence of factors has created an exceptionally attractive period within the legacy industry, he added.
“These factors include, but are not limited to, regulatory changes impacting underwriters globally (including Solvency II, recent US tax reforms and certain OECD tax policies), Brexit, heightened M&A activity in the property and casualty insurance sector and the continuing separation of distribution from underwriting capital are some of the reasons behind this trend.
R&Q expects these conditions to subsist for the foreseeable future and that attractive legacy investment opportunities will continue to arise.
In 2018, the insurer completed 18 legacy transactions and entered into 12 new program partnerships across the US, Bermuda, European and UK markets.
Shares fell 6% to 170p.