Ontario Court Grants $455.7 million Class Action Judgment in favour of
Policyholders

LONDON, ON, Oct. 3 /CNW/ - Lead class action plaintiffs James Jeffery, D'Alton Rudd and John McKittrick are pleased to announce that the Ontario Superior Court of Justice, by Madam Justice J.N. Morissette released a judgment dated October 1, 2010 in London Ontario allowing the claims of participating policyholders of London Life Insurance Company and the Great-West Life Assurance Company and ordering payment by these companies of $455.7 million.

The judgment follows a 45 day trial held in London, Ontario which contested the transfer of $180 million from the participating policyholder accounts of London Life and $40 million from the participating policyholder accounts of Great-West Life in order to finance the 1997 takeover of London Insurance Group ("the par account transactions").

The court held that the defendant companies breached s. 462, and other sections of the Insurance Companies Act ("ICA") which prohibits transfers from the participating accounts of federally incorporated life insurers. The court conducted an analysis of the facts underlying the transaction and concluded at paragraph 105 of the judgment:

"This Court, therefore finds that the $220 million payment involved a transfer of cash in contravention of s. 462 of the ICA".

The court reviewed the conduct of the companies, their auditors and external advisors and concluded that the accounting for the par account transactions failed to comply with Generally Accepted Accounting Principles (GAAP) contrary to s. 331(4) of the Insurance Companies Act.

The plaintiffs were pleased with the result. "We look forward to working with London Life and Great-West Life to implement the requirements of the judgment for the benefit of participating policyholders. We also look forward to Office of the Superintendant of Financial Institutions' active involvement in correcting the companies' conduct in respect of the par account transactions" said Mr. Jeffery.

The class is represented by Harrison Pensa LLP and Bates Barristers. A copy of the judgment and other details respecting the actions can be found at www.harrisonpensa.com.

For further information: Paul Bates, Bates Barristers, 416.869.9898; David Williams, Harrison Pensa LLP, 519.661.6782; Jon Foreman, Harrison Pensa LLP, 519.661.6775