The parties in a class action over alleged overcharging of group insurance premiums have agreed to an in-principle settlement of $140 million.

Colonial First State Investments, Colonial Mutual Life Assurance Society and AIA Australia backed the arrangement without admission of liability, plaintiff law firm Shine Justice says.

“A formal settlement deed is being negotiated by the parties,” it added. “The settlement … is subject to the approval of the Federal Court.”

The class action was launched in 2020 on behalf of Simon Mallia and group members who alleged they were overcharged for their death, total and permanent disability and income protection covers.