The start of the New Year saw the end of Equitable Life after a deal to buy the remaining business of the 250-year-old insurer was completed on New Year’s Eve.
Utmost, a life & pension firm that specialises in the acquisition of so-called zombie funds which have closed to new business, agreed to buy Equitable’s remaining business – a deal which covers more than 300,000 policyholders and £6 billion in assets.
At its peak, Equitable Life had 1.5 million policyholders who trusted it with £26bn. Parts of the business have been offloaded to other insurers in recent years.
Equitable Life – what went wrong
The problems with Equitable Life stemmed from the ambitious promises it made to policyholders during the 60s, 70s & 80s that it couldn’t afford to keep. It offered high rates of return which, by the 90s, became unaffordable, owing to falls in interest rates and inflation. This led to cuts in bonuses and by July 2000 the insurer was unable to meet its obligations and stopped accepting new business.
What now for Equitable Life policyholders?
Following approval of the Equitable Life-Utmost proposal, if you’re an Equitable Life policyholder, you’ll need to make some decisions about what happens to your money.
Questions you might want help on include:
- What next for your retirement plans?
- Are you thinking about taking tax-free cash or income from your pension?
- Is Utmost the right home for your pension long term?
EQ Investors are happy to offer a free, one-hour financial planning consultation (either in person or by phone) to discuss your Equitable Life with-profits policy and wider circumstances. All initial meetings are offered on a fully confidential, no obligation basis.
Contact our team
Please feel free to give us a call on 020 7488 7171 or email us at email@example.com, alternatively, you can book an appointment here.