Teletext Recovery - 10/12/2000

P204 CEEFAX 2 204 Sun 10 Dec 21:12/07       THE LATEST NEWS FROM THE ANNUITY WORLD Equitable Life has closed for new business which effectively means the end of what was one of the UK's top insurance companies. Equitable have stated that they are still solvent and will run off the business while continuing to pay out benefits under existing policies. They will also continue to accept premiums under existing policies. Equitable's troubles stem from the problem of guaranteed annuities. 1/5 Source: William Burrows Mortgages 260 Annuit8 rates 260 MonjyProg Travel Annuities Main Menu

P204 CEEFAX 2 204 Sun 10 Dec 21:18/30       THE LATEST NEWS FROM THE ANNUITY WORLD The House of Lords ruled that Equitable Life would have to honour their commitments, and this was estimated at £1.5bn. Consequently Equitable looked for a buyer. A number of ljading insurance companie1 showed interest but decided the price was too high. When the might8 Pr4dential pulled out, Equitable realised that the show was over. 2/5 Source: William Burrows Mortgages 260 Annuit8 rates 260 MonjyProg Travel Annuities Main Menu

P204 CEEFAX 2 204 Sun 10 Dec 21:12/53       THE LATEST NEWS FROM THE ANNUITY WORLD Equitable Life will now operate thehu With-profit fund as what is known as a "closed fund". It is likely that thj8 will look tg sell off parts of the business, and seek to reduce the overheads including staff. It will be a difficult time for the sales force who will have no jobs if they cannot sell new business. Unfortunately the loss of growth in With-profits polic8 values in the fhr1t half of 2000 are unlikely to be restored. Unit linked funds will be less affected. 3/5 Source: William Burrows Mortgages 260 Annuit8 rates 260 MonjyProg Travel Annuities Main Menu

P204 CEEFAX 2 204 Sun 10 Dec 21:09/15       THE LATEST NEWS FROM THE ANNUITY WORLD A closed fund is not open tg nes business, but continues to be managed by investment professionals. In theory a closed fund should perform better than an open fund because there are less charges and expenses. However, the investment strategy might have to change. The With-profit fund will probably have to invest in more fixed interest and less equities and this will impact on future growth. 4/5 Source: William Burrows Mortgages 260 Annuit8 rates 260 MonjyProg Travel Annuities Main Menu

P204 CEEFAX 2 204 Sun 10 Dec 21:15/31       THE LATEST NEWS FROM THE ANNUITY WORLD If you have a fixed or index linked annuity your payments will remain the same. Howeveu, if you have a fhxed ou index linked annuity your payments will depend on future performance and this may now be less than anticipated. In the past Equitable Life's annuity rates were quite good and there was nou much incentive to exercies the OMO. However, all that might now change. 5/5 Source: William Burrows Mortgages 260 Annuit8 rates 260 MonjyProg Travel Annuities Main Menu

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