TORONTO, Oct 3 (Reuters) - Great-West Lifeco Inc, one of Canada's largest life insurers, said it will appeal a court ruling ordering it to pay C$456 million ($447.1 million) in a case related to the 1997 takeover of London Insurance Group.
In a statement issued late on Friday, the Winnipeg, Manitoba-based insurer said the Ontario Superior Court of Justice decision was based on the involvement of 'participating accounts' of Great-West Lifeco subsidiaries London Life Insurance Company and The Great-West Life Assurance Company in the financing of the acquisition.
A separate statement issued on Sunday by plaintiffs involved in the case said the court held that the Great-West Lifeco subsidiaries breached sections of the Insurance Companies Act which prohibit transfers from the participating accounts of federally incorporated life insurers.
'Although the decision confirms in many respects the Companies' position, there are significant aspects of the decision which the companies believe are in error. Accordingly, the Companies intend to appeal the decision,' the Great-West Lifeco statement said.
'The decision, if sustained on appeal, would require that the companies pay an amount of C$456 million to the participating accounts.'
It added that if the decision is upheld, it is not expected to have a material impact on the capital position of the subsidiaries. Great-West Lifeco is Canada's largest life insurer by market capitalization.
($1=$1.02 Canadian)
(Reporting by Jeffrey Hodgson; Editing by Bernard Orr)
((jeffrey.hodgson@thomsonreuters.com; 416 941 8099; Reuters .Messaging: jeffrey.hodgson.reuters.com@reuters.net) Keywords: GREATWESTLIFECO/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
In a statement issued late on Friday, the Winnipeg, Manitoba-based insurer said the Ontario Superior Court of Justice decision was based on the involvement of 'participating accounts' of Great-West Lifeco subsidiaries London Life Insurance Company and The Great-West Life Assurance Company in the financing of the acquisition.
A separate statement issued on Sunday by plaintiffs involved in the case said the court held that the Great-West Lifeco subsidiaries breached sections of the Insurance Companies Act which prohibit transfers from the participating accounts of federally incorporated life insurers.
'Although the decision confirms in many respects the Companies' position, there are significant aspects of the decision which the companies believe are in error. Accordingly, the Companies intend to appeal the decision,' the Great-West Lifeco statement said.
'The decision, if sustained on appeal, would require that the companies pay an amount of C$456 million to the participating accounts.'
It added that if the decision is upheld, it is not expected to have a material impact on the capital position of the subsidiaries. Great-West Lifeco is Canada's largest life insurer by market capitalization.
($1=$1.02 Canadian)
(Reporting by Jeffrey Hodgson; Editing by Bernard Orr)
((jeffrey.hodgson@thomsonreuters.com; 416 941 8099; Reuters .Messaging: jeffrey.hodgson.reuters.com@reuters.net) Keywords: GREATWESTLIFECO/
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.