If Equitable Life decide to ‘sell off’ its with profits annuities business, they have said that customers may not receive a windfall. However, they have confirmed that they are considering selling its with profits book and have made a select number of interested parties aware of this.
Following a deal with Canada Life, Equitable Life has already sold a proportion of its pension liabilities and if they sold the with profits proportion, it would help avoid the administrative investigation that has been ongoing by the Financial Services Authority since 2001.
Our view
Like any deal, it will all depend upon the deal struck. Canada Life is a business and it will have negotiated terms to protect itself and its policyholders and not Equitable Life members.