Zurich Financial Services Group and subsidiary, Farmers Group Incorporated, have just settled a class action lawsuit. According to the terms of the class action settlement, the company will make $455 million available to close to 13 million policy holders. The settlement will cover claims against the Farmers Group Incorporated subsidiary since 1999.

Zurich Financial Services does not believe that the claims made by the plaintiff are justified, but they wish to “avoid risks and significant expense of continued litigation.”

On top of the $455 million that will be made available, there will be an additional $90 million in attorney fees. The original complaint was filed back in August of 2003 (Fogel vs. Farmers Group Inc.). Each class member in the lawsuit will receive on average, $30-$35.

Third quarter earnings for Zurich are expected out on November 4. The hit that the company expects to take from the settlement on these earnings is about $295 million.