Zurich to settle with US policyholders for $455M

[October 07, 2010]  GENEVA (AP) -- Swiss insurance company Zurich Financial Services Group says its U.S. subsidiary has agreed a $455 million settlement with up to 13 million policyholders who claim they were charged inflated fees.

It says the subsidiary, Farmers Group Inc., will pay individual policyholders on average $35 to settle claims going back to 1999.

Spokesman Ingo Buse says the company will also pay lawyers' fees of up to $90 million.

Zurich said in a statement Thursday that the settlement is subject to court approval.

The company says it will take a charge of $295 million in the third quarter due to the settlement.

Zurich shares rose 0.2 percent to 231.20 Swiss francs ($241.08).

[Associated Press]

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