Sun Life Financial Inc. has proposed a $213.5 million settlement for a class action lawsuit involving life insurance policies issued by MetLife between 1985 and 1998. The lawsuit, initiated by MetLife policyholders in 2010, alleges breaches in the sale and administration of approximately 230,000 life insurance policies.
Sun Life inherited these policies when it acquired Clarica Life Insurance Co. in 2002, which had previously taken over MetLife’s Canadian operations in 1998. The plaintiffs originally sought an astounding $2.5 billion from Sun Life, claiming that policyholders may have been overcharged for insurance costs and fees.
Key details of the settlement:
- Eligible policyholders include those with Universal Plus, Flexiplus, or Optimet policies sold by MetLife between 1987 and 1998.
- The settlement is still subject to court approval, with a date yet to be confirmed.
- Class members have been categorized into three groups based on their specific policies.
Although Sun Life expects this settlement to result in a charge of about $145 million in its first-quarter net income for 2026, no allegations have been proven in court as of yet. MetLife provided Sun Life an indemnity on the policies involved in this case, which does not include any policies issued directly by Sun Life itself.
Eligible policyholders can register their information online to claim part of this settlement. However, it remains unclear how much each individual class member could receive from the total amount.
The next ruling regarding this case is anticipated soon, as the court sets its schedule for hearings related to the approval of the settlement.
