Great-West Lifeco statement on a decision released January 24 by the Ontario
Superior Court of Justice
WINNIPEG, Jan. 25, 2013 /CNW/ - The Ontario Superior Court of Justice has
released a decision in regard to the involvement of the participating accounts
of Great-West Lifeco subsidiaries London Life Insurance Company and The
Great-West Life Assurance Company in the financing of the acquisition of
London Insurance Group in 1997.
This decision follows on the Court of Appeal decision from November 11, 2011.
That court ruledthe Companies achieved substantial success and required that
there be adjustments to the original trial judgment regarding amounts which
were to be reallocated to the participating accounts going forward. The
Ontario Superior Court Decision released yesterday ordered that $284.6 million
be reallocated to the participating account surplus. The Company will be
appealing that decision.
The Court of Appeal confirmed that participating policyholders were treated
fairly by the Company in the acquisition of London Life in 1997 and that there
was no impact on their dividends. The Court of Appeal also confirmed that it
was reasonable for the participating accounts to contribute to the acquisition
in order to receive benefits. Any monies to be reallocated to the
participating accounts will be dealt with in accordance with the companies'
participating policyholder dividend policies in the ordinary course of
business. The decision provides that no awards are to be paid out to
individual class members. There will not be any impact on the capital position
of the Companies or on participating policy contract terms and conditions.
Great-West Lifeco Inc. (TSX: GWO) is an international financial services
holding company with interests in life insurance, health insurance, retirement
and investment services, asset management and reinsurance businesses.
Great-West Lifeco has operations in Canada, the United States, Europe and Asia
through The Great-West Life Assurance Company, London Life Insurance Company,
The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company
and Putnam Investments, LLC. Great-West Lifeco and its companies have over
$532 billion in assets under administration, and are members of the Power
Financial Corporation group of companies.
Assets as of September 30, 2012
Marlene Klassen, APR Assistant Vice-President, Communication Services
SOURCE: Great-West Lifeco Inc.
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CO: London Life Insurance Company
NI: INS LAW VERDICTS LAWVIEWS
-0- Jan/25/2013 19:13 GMT
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