Equitable Life warns of capital shortfall

Life assurer Equitable Life says it might not be able to meet regulatory capital requirements due to volatile investment markets…

Life assurer Equitable Life says it might not be able to meet regulatory capital requirements due to volatile investment markets but added it remains solvent.

Equitable, which nearly collapsed two years ago, said today there was a possibility it might not have the minimum capital that the nation's financial regulator requires life assurers to hold in excess of the capital needed to pay policyholders.

The mutually held insurer also said it might not be able to pay back bondholders, although it said it remained solvent because it had £382 million sterling of capital above its liabilities.