The chief executive of Equitable Life Chris Headdon has said the company's problems are sad but not a crisis or disaster.
His comments in today's Financial Times follow Equitable's decision not to take on any new business last month, and the imposition of exit penalties on policy holders to stem the outflow of funds.
Headdon refused to accept any blame for Equitable's situation, and also exonerated his predecessor and other board members who resigned last month.
'At the end of the day people are going to continue getting their pensions,' he said. "They may not be quite as high as otherwise expected, but they might still compare favourably with a number of other organisations'.
Troubles at Equitable started when a House of Lords ruling forced it to pay out £1.5 billion to honour guaranteed annuity policies. Difficulties were compounded when potential buyer Prudential pulled out of negotiations and Equitable was forced to close to any new business.
In Britain the Equitable situation has provoked considerable political debate. Last night Vincent Cable, the Liberal Democrat spokesman for trade and industry, said Headdon's comments were complacent and insensitive considering the 'shocking mismanagement' of the company.
