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Daily Insurance Industry News
Sunday 18th of November 2018
January 27, 2011

Equitable Life policyholders receive 22% of relative losses

by Gill Montia

Story link: Equitable Life policyholders receive 22% of relative losses

Ministers have accepted the recommendations of the Independent Commission on Equitable Life Payments, regarding the allocation of the £775 million fund set aside to compensate the failed mutual’s non With Profits policyholders.

The Commission has recommended a pro-rata allocation of the fund, to be paid in proportion to the size of relative losses.

The outcome means that around 945,000 policyholders will receive payments equivalent to 22.4% of their relative losses, with the remaining 100,000 policyholders discounted because their pro-rata allocation amounts to less than £10.

Payments to the oldest policyholders will be prioritised and the over 60s can expect to start receiving their cash from mid-2011, once full details of the scheme have been approved by Parliament.

Policyholders do not need to take any action at this stage.

The overall losses suffered by all Equitable policyholders has recently been officially recalculated at £4.1 billion.

 

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