Equitable Life’s Preliminary Announcement for the year ended 31 December 2002

 

Society “cautiously optimistic” about future outlook

 

 

Business Highlights

 

·         Society continues to meet statutory solvency requirements; real progress in stabilising the fund and no material new issues have emerged.

·         No further reductions to maturity or surrender payouts needed.

·         No discretionary bonus for 2002.  Interim non-guaranteed bonus of 3.5% p.a. (2.75% p.a. for life assurance policies) commences from 1 April, 2003.

·         Fixed-interest securities now account for 80% of total asset portfolio.

·         Board “cautiously optimistic” over future but significant uncertainties remain.

 

Vanni Treves, Equitable Life’s Chairman, said: “I believe that these results show that Equitable Life is gradually coming out of intensive care.   Although responding to treatment, we are still some way off declaring a clean bill of health. There are a number of difficult issues that still need to be resolved but, looking forward, I am cautiously optimistic about the Society’s outlook.”

 

Charles Thomson, the Society’s Chief Executive, said: “This has again been a difficult period for Equitable Life but the actions taken over the last year are helping to stabilise the Society.  Over the coming year we aim gradually to remove the substantial uncertainties that continue to overhang the Society, meet our obligations to policyholders, reduce expenses and resolve outstanding claims and litigation against the fund.  We are on track to meet those objectives.”