He said the world’s oldest mutual life and pensions group, which was forced to close to new business and notoriously came close to collapse in 2000, is looking to boost returns to policy holders as it has enough cash to meet 220 per cent of its regulatory capital requirements.

It is sitting on £500 million of surplus cash.

When customers surrender their policies, they receive the higher of either the policy’s guaranteed value or surrender value plus 35 per cent.

Wiscarson said: “We could potentially double that [the 35 per cent bonus rate]. It depends on how we do it. Our strategic challenge is to increase the bonus rate quickly, without compromising the stability of the society.”

The former Lloyds TSB director joined Equitable in 2009 and under him, its capital position has been strengthened through deals such as the 2015 sale of its annuity business to Canada Life and the transfer of part of its defined benefit staff pension scheme to Legal & General in 2013.

As the mutual’s finances improve, Wiscarson has been able to increase the bonus rate for policy holders.

In March 2011 the bonus rate was 12.5 per cent.

It doubled in April 2014, then rose to 35 per cent the following year.

Elsewhere, the Government’s final salary scheme lifeboat, the Pension Protection Fund, is said to be monitoring embattled construction and support services group Carillion, in case it needs to rescue its defined benefit schemes.

It is understood the PPF is ready to step in and take on the £147 million defined benefit scheme of collapsed food and tobacco wholesaler Palmer & Harvey.

It was closed to new entrants in 2013 and reportedly has a £80 million deficit.

The firm’s 2016 accounts revealed a deficit of £5.3 million.