The Canadian Life and Health Insurance Association says the court found a 2018 regulation prevents life insurance companies from accepting deposits and amounts unrelated to insurance coverage, marking a win in the insurance industry's fight with investment firms.
In the lawsuit, Mosten Investment LP had argued that Manufacturers Life Insurance Co.'s universal life insurance policy allowed for unlimited deposits and a guaranteed return. The case caught the attention of prominent short-seller Muddy Waters, which argued in 2018 that a ruling in Mosten's favour could lead to billions of dollars of losses.
But Manulife says it was successful in arguing that policyholders cannot make unlimited deposits into universal life insurance contracts and that deposits must relate to amounts required to pay the life insurance premium.
Mosten, says the firm is reviewing the decision, and is disappointed the court would permit governmental interference into a contract that was issued decades before the new regulations were passed.
Manulife says the legal matter did not have any material impact on the company's business, and shares of Manulife's stock rose more than one per cent on Wednesday.
Manulife says the legal matter did not have any material impact on the company's business, and shares of Manulife's stock rose more than one per cent on Wednesday.
No comments:
Post a Comment