Equitable Life, the troubled mutual insurance group, said yesterday that a decision by the UK House of Lords last summer affecting its policyholders could not be challenged or the case reopened.

Equitable, whose operating assets have now been sold to mortgage bank Halifax Plc, had requested legal opinions on whether the case could be reopened.

Last summer the House of Lords ruled that Equitable had acted unlawfully in its decision to cut annuity rates to holders of guaranteed annuity pension policies. This left the mutually owned company with a large hole in its capital, forcing it to find a buyer.

The investigation has been completed and the conclusion is that the House of Lords' decision cannot be reopened or challenged.

The investigation did find that Equitable policyholders not holding guaranteed annuity policies could make claims against Equitable Life, but stated these would not have much chance of success.