Equitable Life urged its policyholders yesterday to back a last-ditch plan to save the 240-year old firm from ruin, offering to pay them to give up the right to guaranteed returns.

Equitable sent out a ballot to its policyholders as it revealed the value of its fund had shrunk by nearly £3 billion sterling (€4.79 billion) in the third quarter, amid falling stock markets and a customer exodus. "It's decision time for policyholders and the future of the society is firmly in their hands," chairman Mr Vanni Treves said.