(Reuters) - Manulife Financial Corp said on Monday a Saskatchewan court had ruled in favor of the company in the Mosten Investment LP case, dismissing the hedge fund’s claims against the Canadian insurer.
The court’s decision comes after it had reserved its decision last month on whether claims made by the hedge fund against the insurer should be dismissed following the change of rules.
Last year, Saskatchewan said it would limit the amount of money investors could put into universal life insurance policies. Manulife had said it believed the new regulations will more quickly resolve the case in its favor.
In a case brought by the hedge fund two years ago, it claimed the right to put unlimited funds into an old universal life insurance policy, which is attached to a side account that pays out at least 4 percent a year on excess funds.
The policies were sold more than two decades ago, when interest rates were at much higher levels than they are today.
Reporting by Debroop Roy in Bengaluru; Editing by Anil D'Silva