UK insurers critical of "contingent convertibles"

LONDON, Nov 10 (Reuters) - The Association of British Insurers said on Tuesday its members were against including a new type of hybrid bond, so-called contingent convertibles, in bond indexes.

"Our members are strongly opposed, at this present time, to these instruments being included in bond indices," the ABI said in a statement.

The ABI said if contingent convertibles were included in indexes this would "effectively require some bond investors to buy these instruments and subsequently to become forced sellers if and when they convert into equity".

The contingent convertibles form part of a cash raising planned by British bank Lloyds (LLOY.L). (Reporting by Jane Baird and Jane Merriman; Editing by Dan Lalor)