Sun Life Financial Inc. has proposed a $213.5 million settlement for a class action lawsuit concerning life insurance policies issued by MetLife in the late 20th century.
The lawsuit began in 2010, initiated by MetLife policyholders who alleged breaches in the sale and administration of approximately 230,000 life insurance policies sold between 1985 and 1998.
Sun Life acquired these policies through its purchase of Clarica Life Insurance Co. in 2002. The plaintiffs originally sought $2.5 billion from Sun Life.
The proposed settlement would specifically benefit eligible policyholders who held Universal Plus, Flexiplus, or Optimet policies sold by MetLife between 1987 and 1998.
As part of the settlement, Sun Life expects to incur a charge of about $145 million in its first-quarter net income for 2026.
This case does not involve any policies issued directly by Sun Life; rather, it concerns those inherited from MetLife.
MetLife provided Sun Life with an indemnity on the disputed policies, which complicates the legal landscape.
The court must still approve the settlement, with no specific timeline disclosed for this process.
Eligible policyholders can register online to claim their part of the settlement, but it remains unclear how much each individual could receive.
The lawsuit claims that policyholders may have been overcharged for insurance costs and fees associated with certain MetLife policies sold during that era.
No allegations have been proven in court as of yet, adding uncertainty to the outcome of this case.