View more on these topics

Equitable Life decides against sale of business

Equitable Life has decided that a sale of the business would not improve prospects for policyholders and will instead continue to run-off the business under existing management.

As part of the run-off the board of directors will be reduced to keep costs down and the society is currently recruiting a new chief executive to replace Charles Thomson when he steps down in the autumn.

Fred Shedden and Andrew Threadgold are also set to leave the board at the annual general meeting.

Equitable’s excess assets at the end of 2008 were £414m, down 33 per cent from the previous year when they stood at £621m, but they still represent 7 per cent of the with-profits fund.

As a result of poor investment returns, at the end of December the board decreased policy values by 3 per cent for with-profits pension policies and by 2.4 per cent for life assurance policies

Then in March, as a result of continuing poor returns, the board decreased policy values by a further 2 per cent for applicable with-profits pension policies and by 1.6 per cent for life assurance policies to give an overall effect since 1 January 2008 of a 5 per cent reduction in with-profits pension policies and a 4 per cent reduction for life assurance policies.

Until further notice, no interim bonus will be added for either pension policies or life assurance policies.

Equitable Life chairman Vanni Treves says: “The durability of the society’s financial position in the face of the global economic turmoil is clear evidence of the success of the steps we have taken.

“We are also pleased to update our policyholders on our plan to secure the run-off strategy for the future. We will also continue to lobby Government to pay the compensation which policyholders deserve.”


Will QE become QED?

There is considerable uncertainty about what quantitative easing means, how it will be implemented and what will be the effect.

Treasury did not think bank crash was priority

The Treasury knew it was ill-prepared for a bank’s collapse as early as 2004 but failed to remedy this before the run on Northern Rock, a report has revealed.The National Audit Office’s Northern Rock report published last week also shows that Rock sold £1.8bn of high-risk mortgages while getting state aid.It says Rock continued to […]

Quarter of top 100 alpha managers are at boutiques

Almost a quarter of Trustnet’s top 100 alpha managers are operating in a boutique environment.Twenty-two boutique fund managers are in the new alpha fund manager rating service which characterises managers through their long-term performance. Firms with managers on the list include River & Mercantile with Dan Hanbury, Rensburg with Mark Hall and Ruffer with Timothy […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm