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Equitable Life reports increased policy values
Equitable Life has predicted a "real positive momentum" in the year ahead as it revealed an increase in assets for policyholders.
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In its preliminary results for the year ended 31 December 2009 the society's excess of realistic assets (ERA) over liabilities increased by £261m to £675m.
The sum is available to meet any unforeseen liabilities, and liabilities in excess of those provided for at the balance sheet date, and to increase policy values in the future.
The realistic value of with profits assets has also grown from £5,546m in 2008 to £5,951m by the end of 2009, less policy values worth £4,552m.
The movement in the realistic value of with profits assets related primarily to claims payments made during last year.
Ian Brimecome, chairman of Equitable Life, said despite a challenging 2009 the society had benefited from the completion of the contract with HCL to provide administration services from March next year which had added millions of pounds of value to policyholder funds.
He said: "This, together with a considerable easing in the stresses on the bond, equity and property markets, gave the board confidence to increase policy values in 2010."
Chris Wiscarson, chief executive of Equitable Life, said the society would continue to focus on maximising the return on policyholder assets subject to meeting solvency requirements; providing the best value for money cost base; and achieving maximum government compensation for policyholders.
He said: "It is our intention to distribute all of the assets amongst with-profits policyholders as fairly as possible over time."
Mr Wiscarson congratulated the Equitable Members Action Group (EMAG) on its success in getting the government to change the terms of reference of Sir John Chadwick's compensation proposals so that his advice on a compensation scheme will be more comprehensive than it might otherwise have been.
He said: "We appeal to Sir John and the government to bring forward a scheme that is simple and transparent.
"No matter how fair the theory of any scheme, if policyholders and commentators are unable to understand it, it will never seem fair."
