The Equitable Life Payment Scheme (ELPS) has paid out £816m to 717,600 policyholders.
The scheme, set up in 2011, was originally intended to pay out £1.5bn over its duration but it was extended in last year's Budget to customers who bought with-profits policies before 1992.
The Treasury has paid out almost 1,400 policyholders a day since it launched the scheme.
So far, it has paid £511m to 375,672 individual investors, and £64m to 33,547 first payments to with-profits annuitants, along with £116m separate annual payments to annuitants.
A further £15m has been paid out to the estates of 2,425 deceased annuitants, while £110m has been paid to people who bought their policy via their company pension scheme.
Financial secretary to the Treasury Sajid Javid said: "This government has allocated up to £1.5bn to help Equitable Life policyholders and we are making strong progress to help those who suffered an injustice."
The scheme has suffered delays and problems since its launch.
Last year, the National Audit Office (NAO) reported that the scheme was beset by mistakes and delays due to old and incomplete data and the speedy nature in which the scheme was set up.
The following month, the Treasury admitted in a Public Accounts Committee inquiry that it had accidentally destroyed the details of 350,000 Equitable Life vicitims.
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