Calliden Group will receive $3.4 million in settlement of its dispute with Australian Unity over the sale of the mutual’s general insurance business.

In 2008, Calliden started proceedings in the NSW Supreme Court over the actuarial valuations of Australian Unity General Insurance and Mansions of Australia businesses that were part of the deal.

Calliden alleged Australian Unity breached the terms of the share sale deed, which provided for the adjustment of the purchase price on completion of the deal based on the estimated value of the relevant insurance liabilities at that time.

Justice Einstein handed down a judgement in favour of Calliden in April.

Subsequently Calliden filed for further clarification from the court to enforce the completion audit and determine the final purchase price.

Australian Unity has now agreed to pay Calliden about $3.4 million in full settlement of the purchase price although specific details of the settlement are confidential.

Calliden CEO Nick Kirk says the settlement sum will be treated as a profit, with $550,000 being recognised in the first-half accounts and the remainder in the full-year results.

It will have a $3 million positive impact on Calliden’s bottom line, he says.

Australian Unity sold the business to Calliden for $62.5 million, which also gave it a 13% stake in the insurer.