Troubled mutual Equitable Life said yesterday it remained solvent and did not plan any further reductions to the maturity value of members' policies.

The life assurer said it was "cautiously optimistic" about the future and was making real progress in stabilising the fund.

But it warned that significant uncertainties still remained, including settling with former members who believe they were mis-sold policies but who left the society before its compromise scheme was introduced.

Chairman Vanni Treves said: "I believe these results show that Equitable Life is gradually coming out of intensive care.

"Although responding to treatment, we are still some way off declaring a clean bill of health.

"There are a number of difficult issues that still need to be resolved but, looking forward, I am cautiously optimistic about the society's outlook."