Equitable Life yesterday moved to reassure its embattled members that it was not on the brink of insolvency.

A report in The Sunday Times said leaked boardroom papers suggested the troubled firm had contacted accountants Deloitte & Touche with a view to becoming possible administrators.

Equitable's chief executive Mr Charles Thomson told his board a month ago of the "need to prepare to appoint an administrator" while the group's chief financial officer, Mr Charles Bellringer, had opened talks with Deloitte & Touche, the newspaper added.

Such a move would threaten endowments and savings plans of 1.5 million British customers.

Mr Bob Widdess, acting chairman of the Equitable Life Policyholders Action Group, said he had spoken to Equitable and now believed it was not facing collapse. He conceded that "nothing is impossible" but added: "While Equitable is in a much worse state than many other companies, they are not likely to be going bust in the next week or year or whenever." Ms Liz Kwantes, co-ordinator of the Equitable Life Members Help Group, added: "Yes, of course Equitable has to look at the option of insolvency but that doesn't necessarily mean it is about to go belly up."

An Equitable spokesman denied the company was facing insolvency. "Equitable Life has not drawn up any plan for administration," he said.

"Furthermore, it has no plan to appoint Deloitte & Touche or any other firm as administrator."

The company also denied a claim that the leaked documents showed Equitable had temporarily breached the solvency requirements set down by the UK Financial Services Authority by failing to meet its required minimum margin on one day in June.

The spokesman said: "It is no secret that Equitable Life has - and still does - require careful financial management and that is what the board is committed to providing in the interests of policyholders." - (PA)