Transamerica, the US subsidiary of Aegon Life Insurance, has agreed to resolve class action litigation relating to monthly deduction rate adjustments on some of its life insurance policies.
The $88m settlement was announced today by Aegon Life, the Indian-based parent company of Transamerica.
In a statement, Aegon said the settlement "removes the uncertainty of this ongoing litigation for the company and its customers."
The Aegon statement went on to explain how "Transamerica implemented these adjustments, necessitated by low long-term interest rates, changes in expectations as to future mortality experience, and other factors, and in accordance with the policies' contractual terms."
"The monthly deduction rate increases enacted in 2017 and 2018 are separate and distinct from the monthly deduction rate increases involved in a prior class action settlement announced by Aegon in October 2018."
Aegon Life Insurance was founded in 2008 and is headquartered in Mumbai.