Equitable Life has declared effective bonus rates of 4.6 per cent on with-profit pension policies and 3.85 per cent on life policies for 2000. Market sources say the bonuses are broadly in line with expectations given that no bonus was applied for the first seven months of the year.

The troubled life operation yesterday declared its bonus rates for the five-month period from August 1st, 2000, to December 31st, 2000. Following the House of Lords ruling on its guaranteed annuity policies, Equitable did not allocate any bonus for the seven months to the end of July 2000.

The annualised 2000 bonus rates were 11 per cent for pension policies (5/12th of 11 per cent or 4.6 per cent for the five-month period) and 9.25 per cent for life policies (5/12th of 9.25 per cent or 3.85 per cent for five months).