Sixteen claimants in a class action brought against two Isle of Man-based insurance giants have died before seeing judgment in the case handed down.

Closing submissions in a £100m compensation battle against Utmost (formerly Old Mutual /Quilter) and Friends Provident International (FPI) concluded in May 2024, following a seven-week trial in Douglas High Court.

But 22 months on, Acting Deemster James Corbett KC has yet to hand down judgment.

The claimant committee for the group bringing the claim has today revealed that 16 claimants have passed away since the trial concluded in May 2024, out of the claimant group of 739.

It says the delay ‘risks denying justice’ to the remaining claimants many of whom are elderly and lost their life savings.

Niall Coburn, principal of Coburn Corporate Intelligence, international investigation firm assisting in the management of the claim, said: ‘Many of the claimants in this case lost their life savings after investing in Friends Provident or Utmost.

‘For these claimants their retirements were ruined, often requiring them to return to work to make ends meet.

‘It has now been almost six years since the claim was filed, and almost two years since the trial concluded.

‘Tragically, 16 of the claimants have passed away before justice could be done.

In an update issued in January, the claimants were told that judgment would be formally handed down on March 11.

But a court spokesperson said: ‘The Acting Deemster has had health issues which have caused the further delay.

‘We remain in close contact with him and are keeping the parties informed.

‘We are currently awaiting his confirmation of a revised timetable and as soon as that comes through it will be communicated to the parties.’

The claimants, mainly British nationals and expats based across the world, say they were sold life assurance products which they were told were safe and low risk - but were based on investment funds which ultimately collapsed.

They argue that the companies misrepresented the products, and that they failed to carry out ‘some minimum standard of due diligence review’ on the underlying funds.

Both FPI and Utmost contest the claims.

First claimant in the case against FPI is Bangkok-based Peter Kells who along with other investors is seeking damages of more than £50m for alleged negligence and misrepresentation regarding the sale of failed investment products including the New Earth Fund, Axiom Legal Financial Fund, LM Group of Funds, Eco Resources Fund and Kijani Community Fund.

First claimant in the case against Utmost is Barry Dickinson, again based in Thailand, who with other investors is also seeking £50m in relation to the sale of the same failed investment products.

The trial in 2024 heard that the litigation centred on ‘wrappers’ offered by FPI and Utmost to retail investors, by which they could allocate their invested funds into underlying funds not operated by FPI or Utmost.

Products were marketed through independent financial advisers and intermediaries.

In a closing submission, barrister for FPI Jonathan Nash KC said the documents received by the test claimants had gone through the ‘mediation of experienced independent financial advisers’ and it was they who would carry out asset vetting and selection for their clients - not the insurance company.

Meanwhile, an even bigger class action against the same two insurance firms will the subject of a 10-week trial in March next year.

Some 1,600 claimants from some 40 countries have lodged claims totalling more than £270m.

Three sets of proceedings are being case-managed together.

The first, dating back to March 2021, has been brought by David and Shelagh Parry and Sovereign Trust (Guernsey) Limited against Quilter International Isle Of Man Limited, now Utmost International Isle of Man Ltd.

A second claim, brought against Utmost, Quilter International Ireland and FPI by Alexander Francis Morrison and a few hundred other claimants, was issued in the first quarter of 2023.

And the third was issued by Nicholas Pankovas and the remaining claimants against Utmost International Isle Of Man Limited, Utmost Paneurope Designated and FPI in October 2024.

The claimants invested in portfolio bonds sold by the defendants.

Many of them allege that their adviser-brokers who arranged the investments received commissions from the defendants which were either undisclosed secret commissions or commissions that were not fully disclosed as to their size or how they were calculated.

It is also alleged that undisclosed commissions were received from third party funds associated with the portfolio bonds.

The claimants say the non-disclosure of these commissions violated fiduciary duties owed to them by their agents, the adviser-brokers, and were facilitated by the defendants, amounting to ‘dishonest assistance and unlawful means conspiracy’.

A case management hearing this week set dates for the disclosure of tens of thousands of documents relating to the case, spanning a period of 28 years.

Next year’s 10-week trial starting March 15 will involve 20 test cases and will be restricted to dealing with issues of liability, Acting Deemster Hodge Malek KC ruled.

If liability is established, a ‘phase two’ hearing would then be held on causation, loss and damages.

This month, the Guernsey Financial Services Commission fined Utmost international Guernsey almost £2m over its use of unregulated brokers in high‑risk regions.