Yahoo Finance Old Mutual resolves US legacy issue as break-up on track
Old Mutual has escaped a court battle in the US over previously sold assets, resolving a legacy issue as its break-up into four separate businesses draws closer.
The FTSE 100 finance firm said The Travelers Co and subsidiary St Paul Fire and Marine Insurance Co had "withdrawn all the remedies they were claiming". It comes just under a month after the claim was lodged.
The Daily Telegraph understands that there was a settlement between the pair for legal fees.
It is understood that the case related to the Fidelity & Guaranty Life business which Old Mutual bought in 2001 from St Paul, and indemnities regarding a book of business. Old Mutual had sold this business on in 2011, to Harbinger Group, which then sold it on the CF Corp last year.
The case was dropped following a hearing at the US district court for New York.
Old Mutual said it "continues to believe that this claim was without merit". Travelers did not respond to requests for comment.
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