Equitable payouts on the rise

By DAILY MAIL REPORTER
Updated:

 

MUTUAL insurer Equitable Life said that it hoped to restructure or sell out to a stronger company in the next year following a significant improvement in its finances.

It increased bonus rates by 1% to 3.5% and cut exit penalties from 11.1% to 8%. Free capital is up 30% to £713m.

Chief executive Charles Thomson said the company, which was forced to put 80% of its investments into bonds to secure its solvency, is now keen to change its structure so it can shift more into shares.

But Paul Braithwaite, of the Equitable Members' Action Group, said: 'This is flim-flam and dreampeddling.'

Thomson brushed aside calls for him and chairman Vanni Treves to quit after botching a legal case against former auditors Ernst & Young.'

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