Mutual insurance group Equitable Life, which had been embroiled in a scandal after failing to deliver on financial promises nearly two decades ago, is reportedly about to pay huge amounts to more than 300,000 policyholders.
Citing a pre-meeting circular to be distributed to members, a report by The Times said the idea of releasing surplus cash is expected to be outlined in the document – with policyholders possibly looking at thousands of pounds in one-off payments. It added that policies are estimated to be worth an average of £15,000.
Chief executive Chris Wiscarson, who has been leading the 256-year-old insurer’s turnaround, is said to be behind the payout plan. Equitable Life would have to release the funds if it were to seriously consider selling itself by restructuring.
Investment bank Goldman Sachs, in the meantime, has been tapped to look into the prospect of a sale.
“We are determined to distribute greater amounts of capital to policyholders, and we are hopeful of being able to give them some good news in the spring,” Wiscarson told Financial Times in an earlier report.