A Money Marketing survey has revealed that Pearl is financially weaker than Equitable Life and Royal Sun Alliance.
AMP Pearl has a free-asset ratio of - 0.9% if future profits are excluded, according to the survey. In comparison, Sun Life has a ratio of 0.2%, Equitable Life is 0.3%, Cornhill is 0.4% and London Life is 0.9%.
Average FAR's fell from 9.6% in 2000 to 5% in 2001. Four mutual companies with the highest FAR's (without reliance on future profits) are NFU at 14.4%, Weslyan at 13.2%, Royal Liver at 12.4% and CIS at 10.1%. Carmel McCarthy, AMP's media officer, said that AMP will be injecting £400m into the UK financial services businesses, which includes Pearl, to provide future financial strength.