Following the release of the Penrose Report into the near collapse of Equitable Life, many policyholders must be wondering what to do next. Many industry commentators are telling policyholders to get out whilst they can.
Our View:
Our advice would be to take advice regarding your own personal case. You will have to pay for the advice but it could save you a lot of money in the long run. Do not jump on the bandwagon and pull your money out, just because others are doing so. There may be many options open to you in terms of taking your money away from Equitable but if you just remove it, you could be penalised. We are concerned with the future solvency of Equitable Life, especially if large numbers of policyholders take their money out. Their stated solvency margin (their free cash) is now just over £450m. This is not a lot of money for a company with 750,000 remaining policyholders.