Equitable Life yesterday said it was ready to consider its long-term future after achieving its most "stable and secure" position since 2000.
Options to be reviewed by the board will extend to a full or partial sale of the business and greater exposure of its fund to the stock market after the society reported further steps in its recovery from near-collapse.
Chairman Vanni Treves said Equitable continued to be solvent and would be able to increase bonuses for holders of UK with-profits pensions policies by 3.5 per cent a year, up from two per cent a year earlier.
Life policies increased to 2.8 per cent from 1.5 per cent. He told policyholders: "The society continues to be solvent and is more stable and secure than at any time in the last four years.
"With the major obstacles being steadily overcome and our improved stability, we can now turn our focus to developing the various options we have identified for the longer term future of the society and its policyholders."
It is likely the options - identified from a process started last year - could be put to members of Europe's oldest mutual later this year.
While a sale would require it to demutualise, Equitable could also move to a unitisation of its £10 billion withprofits fund, allowing policyholders to choose whether they want to increase their exposure to the stock market.
The fund is currently 80 per cent invested in bonds. Equitable said its solvency was £547 million at the end of the year, an increase of £5 million over the previous year.