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Published in Stocks and Investing on Friday, October 1st 2010 at 19:40 GMT by Market Wire
TSX:GWO
WINNIPEG, Oct. 1, 2010 /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.
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 decision, if sustained on appeal, would require that the Companies pay an amount of $456 million to the participating accounts for distribution ($372 million in respect of London Life and $84 million in respect of Great-West Life). These amounts include both capital and interest items.
Regardless of the ultimate outcome of this case, all of the participating policy contract terms and conditions will continue to be honoured. As well, the decision, if sustained on appeal, is not expected to have a material impact on the capital position of the Companies.
The management and Boards of Directors believe they have at all times acted in the best interests of their respective Companies, taking into account the interests of all stakeholders, including the policyholders. The acquisition of London Life was carried out with careful supervision and rigorous analysis, including detailed third party studies. In addition there were statutory reviews by the financial services regulator.
The acquisition of London Life nearly 13 years ago and its integration into the Great-West group of companies has been a marked success and the participating accounts have benefited and continue to benefit from this acquisition.
Great-West Lifeco Inc. (TSX:GWO) is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The corporation 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. Lifeco and its companies have over $460 billion in assets under administration, and are members of the Power Financial Corporation group of companies.
Assets as of June 30, 2010
