Equitable Life uses fund surplus to boost payout

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.

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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.