Great-West Lifeco statement on a decision released by the Court of Appeal for
WINNIPEG, Feb. 3, 2014 /CNW/ - The Court of Appeal for Ontario 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 overturned the Ontario Superior Court's January 24, 2013
decision regarding the amounts to be reallocated to the participating account
surplus. The Court of Appeal reduced the previously ordered amount of $284.6
million to $51.6 million ($27.0 million in respect of London Life and $24.6
million in respect of Great-West Life). The financial impact of this decision
will be reported in the Companies fourth quarter financial results as a
The Court of Appeal confirmed in an earlier decision in this matter 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. That earlier decision also provided that 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. There will not be any impact on the capital
position of the Companies or on participating policy contract terms and
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 Great-West Life, London Life, Canada Life, Irish Life, Great-West
Financial and Putnam Investments. Great-West Lifeco and its companies have
over $705 billion in assets under administration, and are members of the Power
Financial Corporation group of companies.
Assets as of September 30, 2013
SOURCE Great-West Lifeco Inc.
Marlene Klassen, APR Assistant Vice-President, Communication Services
To view this news release in HTML formatting, please use the following URL:
CO: London Life Insurance Company
NI: INS LAW VERDICTS LAWVIEWS
-0- Feb/03/2014 21:36 GMT
Press spacebar to pause and continue. Press esc to stop.