Equitable Life, the troubled UK life assurer, has revealed that in the year to December its with-profits fund showed a negative return of 6.4%.

The return for the £19bn (€30.7bn) fund looks good compared with several life assurance firms, as a result of Equitable's enforced decision to lift its weighting in bonds and cash during the year to cover spiralling liabilities. During 2001, its allocation to equities and property fell from 71% to 44%.