Equitable Life

At the request of a couple of constituents I attended the Equitable Life event in Parliament yesterday. The Group is still pressing for additional compensation. I have taken this up on many occasions with the government. The government’s  view is that they have given compensation to reflect the regulatory failures,  but the major cause of the losses lay with the company. I do not think the government has any plans to revisit the amount of compensation given. The government provided £1500 million of compensation in total. 38,200 annuitants received 100% compensation. 895,000 other policy holders received lesser amounts, which EMAG puts at 22%.

I am very willing to take up individual  cases if there are still outstanding matters about payment of compensation or new points relating to individual contracts that need attention.

This entry was posted in Wokingham and West Berkshire Issues. Bookmark the permalink. Both comments and trackbacks are currently closed.


  1. NHSGP
    Posted October 12, 2017 at 5:10 pm | Permalink

    If you had regulated and demanded that ELAS book their liabilities on the books then the losses would have been stopped early.

    However, when it comes to the state pensions, the state hides those off the books, claim IFRS adherence, but ignore IAS 37.

    That’s exactly the same behavior as ELAS with exactly the same outcome.

    If you want to run though IAS 37 and why it applies ask away.

    But given your job history, I suspect you do know enough about reading a balance sheet.

  2. alan jutson
    Posted October 13, 2017 at 9:20 am | Permalink

    Yes the 38,200 Annuitants did get a reasonable settlement after a 10 year battle, but the hundreds of thousands who were investors and near to retirement, got virtually nothing.

    Having lost an amount which well into a reasonable five figure annual income for life on retirement, with a Guaranteed fixed Annuity rate of 12.5% on my fund (other Companies were offering the same at the time some 35 years ago) I received a lump sum of £535 in compensation for having to take the present market rates.

    Is this an Equitable settlement of compensation ?

  • About John Redwood

    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

  • John’s Books

  • Email Alerts

    You can sign up to receive John's blog posts by e-mail by entering your e-mail address in the box below.

    Enter your email address:

    Delivered by FeedBurner

    The e-mail service is powered by Google's FeedBurner service. Your information is not shared.

  • Map of Visitors

    Locations of visitors to this page