Updated 9th March 2018

EMAG exists to campaign for full government compensation. Will members of EMAG please note that because of pressure of work we regret it is not possible to answer individual written enquiries.

A short video which explains what EMAG is fighting for.

Recent Press Quote

“...The company (Equitable Life), founded in 1762, still has more than £6bn in assets and over 300,000 policyholders, largely in with-profits funds...

Chris Wiscarson, chief executive of Equitable Life, said the sale process was part of a wider review: “The big strategic issue facing Equitable is how to distribute capital in a low interest rate environment,” he told the Financial Times. The company already distributes some capital to customers when they leave - the level is set at 35% of each policy's value...

Equitable had total capital of about £1bn at the end of 2016, the latest date for which figures are available.

“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,” Mr Wiscarson said.

The market for so-called closed books of life insurance businesses has been growing rapidly as companies seek to shed unwanted assets. These books become less efficient over time as the policies run off but the costs associated with them largely remain in place...

Several companies have sprung up to consolidate these books, creating economies of scale as they add new policies to their existing cost bases...”

Oliver Ralph for The Financial Times, 1st March 2018

A new Treasury Minister responsible

A new Economic Secretary to the Treasury, John Glen MP, took over the role from Steve Barclay MP in January. He is the 11th Minister to cover the Equitable Life debacle in a decade. In his capacity as City Minister he is responsibility for BREXIT. Since he represents Salisbury, his constituents are probably inundating him just now. Notwithstanding, EMAG wrote to him on 6th March to ask for an early meeting.

Progress on the APPG

Recruitment of MPs by EMAG's regional team to support the case for paying the residual £2.6bn compensation due to us continues apace. MPs in the APPG group now number 225. What is particularly pleasing is the large number of new Labour MPs who've joined. They are not dogged by Labour's guilty heritage of Gordon Brown having so consistently stuffed Equitable's savers throughout the “noughties”. There are now almost as many Labour MP members as Tories - 87.

Is your MP a member? Find out here.

The APPG has invited the Minister John Glen MP to attend a meeting.

Speculation about Equitable Life pay-outs

Since 1st March there have been a series of press articles that have fuelled false hope. EMAG has been deluged with emails from policyholders and members asking how and when they get their “free money”. Not surprisingly, EMAG has been cautious not to react to hearsay. Instead we sought the facts from the Society.

What is being developed by the Equitable Life's board can and will only affect the current 300,000 members - not any annuitants or ex-policyholders.

Any payouts will NOT be compensation, but a possible distribution of accumulated capital that the Society has been obliged to hold under the new Solvency 2 financial regulations. This capital has been built up by the new Equitable Life board since it took over in Summer 2009.

With-profits annuitants - a history notes

It was the previous Equitable Life board that took the disastrous decision to sell 50,000 with-profits annuitants' contracts in 2007 to the Prudential. EMAG's then chairman, John Newman, went into Court to contest the terms of the sale but to no avail. The Prudential moved the annuitants' £1.8bn fund largely into equities at arguably the worst possible time - which has led to years of miserable cuts to those annuities - but for which the current board of Equitable bears no responsibility. It is legally obligated to run the Society for the benefit of its current members.

EMAG's successful Westminster Rally, 22nd October, 2014

EMAG's campaign objectives

EMAG will campaign until fair compensation is awarded to the million victims of the Equitable Life scandal.

For the majority 945,000 victims

95% of Equitable's with profits policyholders have received just 22% of the Treasury's calculation of their ‘relative losses’ without any interest paid from 2009 onwards.

With the economy at last recovering, we are campaigning for a commitment that victims will receive the missing 78% of their compensation entitlement.

For the pre–1992 WP Annuitants

We are campaigning to get MPs to insist that the 10,000 pre–September 1992 WP Annuitants are compensated on exactly the same terms as those who took their WP Annuity after that date. We view the current flat rate £5,000 as a welcome down–payment.

For the post–1992 Annuitants

For the 37,000 WP Annuitants who are receiving an alleged ‘100% of their relative losses’ we are seeking dialogue with The Prudential to see why annuity payments continue to fall every year.