This document contains the following information: Report of the Equitable Life Inquiry.
This is the report of the investigation by Lord Penrose into the financial crisis at the life assurance company, Equitable Life, the world’s oldest mutual life insurer. The company’s problems were revealed when it emerged it had insufficient funds to honour Guaranteed Annuity Rate policies (GARs), which gave investors a guaranteed minimum income when they retired. It suffered a near collapse in 2000 after it lost a House of Lords court case brought by GAR policyholders, leaving the mutual society with a liability of £1.5 billion and forcing its closure to new business.
This paper was laid before Parliament in response to a legislative requirement or as a Return to an Address and was ordered to be printed by the House of Commons.