We are solvent, says Equitable

Beleaguered insurer Equitable Life has said it is "solvent".

In its interim accounts, Equitable said it had made "significant progress towards greater stability during the first half of 2003".

But the society warned it still faced a "unique set of challenges and uncertainties".

Equitable policyholders are eagerly awaiting the publication of a government inquiry, which was set up into its near-collapse in 2000.

Compensation claims

Publishing its interim accounts, the insurer said good progress had been made in settling claims against the society.

In particular, it said, it had settled a high number of claims from those who did not have guarantees on their policies.

But it was possible that more claims against the society may follow publication of the Treasury-commissioned Lord Penrose inquiry, expected shortly.

In a statement, chief executive Charles Thomson said: "As this review makes clear, significant challenges... remain to be resolved."