A stunning $456-million judgement has been handed down against Winnipeg-based insurance giant Great-West Lifeco in a class-action lawsuit.

An Ontario superior court judge ruled Friday that Great-West breached sections of the Insurance Companies Act by transferring money from subsidiary accounts to finance the 1997 takeover of London Insurance Group.

Nearly 2-million policy holders - mostly from Ontario, Quebec, Saskatchewan and Manitoba - joined thr class-action suit that has been winding through the courts over the past 12 years.

Great-West Lifeco has been ordered to pay $372 million to policyholders of London Life and $84 million to those of Great West Life.

Great-West Lifeco intends to launch an appeal, believing ``significant aspects'' of the decision are ``in error''.