Equitable Life has dropped its 700m claim against its former auditors Ernst & Young.
The case collapsed with Equitable agreeing to make a contribution to E&Y’s legal costs.
In a letter to policyholders Equitable chairman Vanni Treves says its case, which cost the firm 30m to bring to the High Court, had been fatally undermined by the evidence of its former directors and there was too great a risk the judge would rule against the Society.
Treves says the cost to its with-profits polcyholders is around 50 each.
E&Y chairman Nick Land says Equtable failed to “bully it into submission” and the decision has vindicated the accountants.
Treves adds E&Y still faces professional disciplinary proceedings.