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News: Equitable throws in towel again

Beleaguered mutual insurer, Equitable Life, has thrown in the towel yet again - this time by dropping its legal action for negligence against former CEO Alan Nash. Under the deal the society will end its claim and each side will pay their own costs.

Policyholders won't need reminding that it was back in 2000 when Equitable lost its legal battle in the House of Lords regarding the rights of Guaranteed Annuity Rate policyholders and the payouts they should be entitled to. More importantly, it left the firm with a £1.5 billion black hole in its finances.

Last month the society dropped a £2 billion action against its former auditors, Ernst & Young.

The latest move is being justified on grounds of cutting costs and speeding up the court process, given the firm is still suing 10 former directors for negligence. More towels anyone?

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