Equitable Life has reduced its with-profits Market Value Reduction from 11.1% to 8% with policyholders able to leave at the reduced rate immediately. The company has also increased its bonuses, with the non-guaranteed interim bonus rising from 2.5% to 3.5% for with-profits pension policies, and up from 2% to 2.8% for with-profits life policies.
These interim results come as the company says it will continue with its £1.7 billion negligence and breach of duty suit against 15 former directors, although more time was given to reach a settlement, with trial proceedings restarting on the 10th October.
Equitable Life dropped its £750 million claim against Ernst & Young, their former auditor recently, which cost the insurer around £30 million in legal fees.
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