Friends Provident is the latest life insurance firm to raise money to strengthen its balance sheet and finance growth with the sale of a £245m (€385m) convertible bond.

Merrill Lynch is the sole bookrunner and lead manager on the deal. Cazenove is co-lead manager. Merrill managed Friends Provident's £2.3bn initial public offering in July 2001, which was the largest UK IPO of the year. The bank is also Friends Provident's long-standing broker and financial adviser.