The chairman of the mutual revealed the improvement on the previous 12.5 per cent distribution rate in Equitable Life’s 74-page annual report for 2013.
The new rate will apply on transfer, surrender and maturity of funds and will come into effect on 1 April.
The firm has also decided to waive the 5 per cent financial adjustment currently levied on policy transfers.
Mr Brincombe said a number of key decisions, including the withdrawal from investing in commercial property and offering annuities, had provided the basis for a “significant improvement” to policy payouts.
