HOW IT NEARLY TOPPLED

FOUNDED in 1762, Equitable Life is the oldest mutual life insurance company in the UK.

It came to the brink of collapse in 2000 after it could not afford to pay guarantees on pensions annuities, and was forced to put itself up for sale and close to new business.

Equitable slashed the retirement income of around 1m pension savers. It also trapped investors in poorly performing ‘with profits’ funds by imposing hefty Market Value Reductions – or exit penalties – if they wanted to cash in early.

After several critical reports which found mis-management at the firm, the Government announced a £1.5bn compensation package.