Two Rivers Financial Group unit Two Rivers Insurance Co. settled a more than three-year investigation by the Iowa Insurance Division for approximately $1.3 million. But Two Rivers Insurance denies any wrongdoing.
This amount will serve as restitution for customers allegedly affected by the issue in question in the probe. Each individual customer entitled to restitution must also approve the settlement. If a customer does not approve and accept the settlement, it is possible that it may result in an individual action against Two Rivers Insurance.
Any legal proceeding resulting from an individual action against Two Rivers Insurance may have a material adverse effect on Two Rivers Insurance's reputation, business, business practices, prospects, results of operations, liquidity or financial condition. Two Rivers Insurance intends to vigorously defend itself should such an occasion arise, though.
The settlement expense is expected to be realized in the second quarter.
Two Rivers Financial reported first-quarter consolidated net income of $1.8 million, or 83 cents per share, compared to $1.4 million, or 63 cents per share, for the year-ago period.