JRP raises £250m of sterling-denominated bonds

The company said the capital raised increases its flexibility and provides further room for growth at attractive rates of return.

The capital will also allow the group to repay the senior bank debt, which stood at £98m at the end of June 2016, which JRP said did not benefit its regulatory capital position.

In addition, by increasing its leverage, JRP now has further diversified and strengthened its regulatory capital structure. On a pro forma basis, its Solvency II capital ratio at the end of June would have increased to around 151%.

Chief executive Rodney Cook said: “The support we have received from institutional investors demonstrates confidence in JRP's business model and its prospects. Along with a focus on efficient and conservative risk management, our business has been built on the simple premise of excellent customer service supported by unrivalled medical underwriting IP.

“This is a clear differentiator for us with our customers, and now with debt investors. The 9% cost of subordinated debt is significantly below the attractive internal rates of return that new business should generate once our synergies are realised, and the proceeds bring our capital ratios more in line with our peer group."

At 1415 BST, JRP shares were down 0.4% to 124.30p.