Experts line up against Equitable

ACCOUNTANCY group Ernst & Young, former auditor to Equitable Life, will deliver its expert witness evidence to the troubled life company this week in the latest round of their multi-billion pound legal battle.

Ernst went to the High Court last week but failed to force the withdrawal of the expert evidence Equitable plans to use in its case.

The strength of Ernst's evidence is seen by observers as crucial in determining whether the case reaches the High Court in April next year or is settled earlier.

Equitable, Britain's oldest mutual life company, almost collapsed in 2000 after the courts ordered it to honour financial promises to policyholders it was unable to meet.

It was left with a £1.5bn bill that forced it to reject new business. It launched a £2.6bn negligence claim against Ernst.

If Ernst loses the case, it could face collapse itself.

Tomorrow, Equitable releases its annual results, which are expected to show no material change in its financial circumstances.