He said: “This is a wonderful windfall for Equitable Life policyholders, who now stand to pick up a nice bonus as the with profits fund and Equitable Life shuts up shop for good.
“There’s still a bit of a wait, but the uplift is so substantial it’s well worth hanging on for.”
Equitable Life came close to collapse in 2000 in one of the UK’s biggest financial scandals, costing its policyholders millions of pounds and prompting a raft of inquiries from the government, regulators and the European Parliament.
The UK government ended up paying more than £1bn in compensation to members because of regulatory failures relating to the insurer.
Equitable Life, which was founded in 1762 and counts Samuel Taylor Coleridge, William Wilberforce and Walter Scott among its former customers, closed to new business 18 years ago.
Since then it has slowly been running itself down.