London Life Insurance Company has reached an agreement to settle class actions against the company. “We are pleased to have reached this agreement to resolve the class actions, and enhance our relationships with our clients,” said London Life Senior Vice-President Al Edwards. “We believe the settlement is fair and reasonable.”

The settlement will provide benefits to more than 500,000 London Life clients across Canada. It applies to owners of eligible participating life insurance policies purchased from London Life across Canada from 1980 through 1995. The settlement includes global and enhanced benefits, and an individual claims review process.

The Company estimates the value of the future settlement benefits to clients to be approximately $180 million. In addition, the value of settlement benefits already provided through prior initiatives is $60 million. The company does not expect the settlement to have a material adverse effect on its financial position.

London Life says it will not recover the cost of the settlement benefits and expenses through future dividend scale changes. Future policyholder dividends will continue to reflect changes in such things as interest rates, claims and expenses.

London Life and the plaintiffs who are parties to the settlement believe the settlement will benefit all eligible clients, and they will strongly recommend its approval to the courts. The settlement requires approval by the courts in British Columbia, Ontario and Quebec, following which London Life will provide information to all eligible clients.