Equitable Life drops sale of with-profits fund
by Gill Montia
Story link: Equitable Life drops sale of with-profits fund
Equitable Life, the troubled mutual life insurer that came close to collapse eight years ago, has dropped the sale of its £6.8 billion with-profits fund.
The company put itself up for sale in March of this year, having already transferred the bulk of its fixed pensions business to Canada Life.
However, the insurer says it has been unable to find a suitable buyer in the current financial climate and will therefore continue to manage existing policies until they mature.
Approaches have been received but according to Equitable, none could guarantee improved prospects for it half-a-million remaining policyholders.
As the firm enters “run-off” mode it will be reviewing its structure, staff and costs.
In related news, the Accountancy and Actuarial Discipline Board announced earlier this week that it is to investigate the way in which government actuaries advised Equitable’s regulators.
The board will focus its enquiries on the advice given by the Government Actuary’s Department, between December 1990 and April 2001.
Equitable Life was founded in 1762 and grew into a £26 billion business, with 1.5 million policyholders.
Its demise resulted from its inability to honour guarantees to policyholders.