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Equitable Life - Up for sale
Mutual lifeco, Equitable Life, which came close to collapse 8 years ago, is to be put up for sale.
Writing in the firm's annual report, Chairman Vanni Treves, said: "We can comfortably run the business off ourselves, but we are also in good shape for others to consider.
"If one or more third parties can provide a better outlook for our policyholders than we can ourselves then we will recommend the best approach to our members. Whatever the outcome, the next 12 months is the right time to address this question."
The news comes after a number of initiatives over the last 12 months, including the transfer of most of the Society's fixed pensions (£4.6 billion) to Canada Life (completed in February 2007); the transfer of University Life Assurance Society to Reliance Mutual at the end of May 2007; the redemption of outstanding Subordinated Bonds in August 2007 and the transfer of the Society's with-profits annuities (pensions in payment) to Prudential in December 2007 (£1.7 billion).
The firm's with profits fund currently stands at £6.8 billion.
Any sale of the insurer would have to be approved by its 750,000 with-profits policyholders. However, should the company either fail to find a buyer or policyholders reject a proposed deal, the firm will continue to operate as a closed life insurer, meaning that existing policies will be managed until they mature, as well as no new customers being taken on in the interim.
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