Equitable update on Pru transfer

Equitable Life is writing to all policyholders to update them on the transfer of its £1.8bn book of with-profits annuity policies to Prudential.

Over the next week, around 400,000 policyholders will get detailed information on the transaction ahead of an extraordinary general meeting scheduled for October 26.

All voting members of the society will be invited to vote on the transfer either at the EGM or by post. The deadline for postal voting is October 24.

The High Court will be asked to approve the transfer on November 28 and, if approved, the transfer is scheduled to be completed on December 31. Equitable says the transfer would improve both bonus earnings prospects and investment flexibility for the society’s with-profits annuitants.

Chief executive Charles Thomson says: “We believe that the transfer will benefit all policyholders and the board is recommending that they vote in favour. The policyholders that are transferring will become part of an actively managed fund, which is one of the biggest and strongest in the UK. The transfer will simplify the structure of the society, improving the prospects of finding a strategic solution for the remaining policyholders.”