Loss-making Zurich Financial Services is to launch a rights issue totalling between $2bn (€2bn) and $2.5bn, and plans to sharpen its business focus on insurance.

The rights issue, whose terms have yet to be determined, is expected to take place in October. The issue, which could be marginally higher than previous expectations of $2bn, is required to boost the firm's capital base. Goldman Sachs, Schroder Salomon Smith Barney, UBS Warburg and Credit Suisse First Boston are thought to be advising on the issue.