Equitable Life currently has only 4% of its investments exposed to stock markets, or equities. The rest is in fixed interest investments and loan stock. It would appear that Equitable now intend to return at least some of their investments to equities, as the company seems to be on a more stable footing.
Our View:
Equitable's interim bonus last year was not bad, considering the alleged state of the company. They would also appear to be able to declare and pay with profits bonuses this year. The news from Equitable is definitely positive and will be welcome for with profits policyholders. It will be interesting to see just how much money Equitable commits to equities and which ones they buy.