Equitable Life has raised its market value adjuster (MVA) from 14% to 20% at the same time as inform...
Equitable Life has raised its market value adjuster (MVA) from 14% to 20% at the same time as informing investors that policy surrender values have been cut by 10%.
The company said that further falls in equity values along with continued market volatility were behind this latest move, despite the with-profits fund holding just 15% in equities, down from 29% at the start of the year. Increases in administration and legal costs have also contributed to the financial adjustments, the company said.
The rise in the company's costs and the impact of struggling equity markets will be detailed in the society's interim accounts for the half-year ending June 30, to be published in the autumn.
Policyholders choosing to take benefits will find their maturity values reduced by 10%, up from the 4% previously announced, unless this takes the value below the guaranteed level, in which case the guaranteed value will be paid.
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