French insurer AXA’s U.K. subsidiary Sun Life & Provincial announced plans to distribute up to £1.7 billion ($2.47 billion) in unclaimed funds to shareholders and policyholders.
The amount has been accruing over the years from lapsed policies and unclaimed life benefits, and has been the subject of a dispute between shareholders and policy holders concerning the relative distribution. Consumer groups have criticized the company for not offering enough to the policy holders.
The settlement approved by the Financial Service Authority, the High Court and 46 percent of policyholders will result in the bulk of the funds going to shareholders, while policy holders will receive an average £400 ($580).
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