Looks like the long running saga is finally coming to a close.
https://www.ft.com/content/863f40a2-707a-11e8-852d-d8b934ff5ffa
Equitable Life sold for £1.8bn to US-backed insurer LCCG
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Equitable still has just under 400,000 policyholders, the majority of whom will receive some of the proceeds of the sale. Those customers who have with-profits policies will get a big jump in the bonus level that is applied to the underlying value of their policies, from 35 per cent to between 60 and 70 per cent. However, as part of the deal they will have to convert their with-profits policies, which carry investment guarantees, to unit-linked policies which are more sensitive to movements in financial markets.
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Equitable Life sold
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Re: Equitable Life sold
As a follow on to this may I ask what may be a very naive question?
The media has been full of comments about how "with profit customers" or "savers" with EL are in for a windfall. What isn't explained is how this relates to people currently receiving an EL pension. Are they too likely to receive a similar windfall?
TIA.
I am not an Equitable Life customer.
The media has been full of comments about how "with profit customers" or "savers" with EL are in for a windfall. What isn't explained is how this relates to people currently receiving an EL pension. Are they too likely to receive a similar windfall?
TIA.
I am not an Equitable Life customer.
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Re: Equitable Life sold
XFool wrote: What isn't explained is how this relates to people currently receiving an EL pension. Are they too likely to receive a similar windfall?
Unlikely. It's the demutulisation effect whereby policyholders are compensated for their loss of ownership rights. Ownership and with profits policies usually correlate and the with profit annuities were transferred to Prudential some time back. For that matter, most or all the non-profit annuities were transferred to Canada Life.
If there are any with profits drawdown policies, these would be in line.
It's going to be a dramatic shift for those who do transfer, since unlike previous exercises, the transfer of Standard Life to Phoenix Group being an example, the Equitable policyholders are going to be asked to give up guarantees in their entirety. Given that some have a guaranteed return of 3.5%, that's expensive to provide.
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Re: Equitable Life sold
Alaric wrote:It's going to be a dramatic shift for those who do transfer, since unlike previous exercises, the transfer of Standard Life to Phoenix Group being an example, the Equitable policyholders are going to be asked to give up guarantees in their entirety.
And that wasn't popular the first time around...
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