Nationwide Mutual Insurance Co. will pay out as much as $163 million to settle an eight-year-old lawsuit over challenged financial transactions at Des Moines-based subsidiary Allied Insurance.

Policyholders of Allied Mutual Insurance sued some of its directors and executives in late 1997, alleging that they had improperly transferred assets of the property-and-casualty company to a publicly held subsidiary, Allied Group.

Following the approval of Iowa's largest-ever settlement of a class action lawsuit, it's payout fund of $100 million to $135 million drew scant attention from potential recipients.

Lawyers said they have received 45,000 claims from policyholders who are eligible to claim the money. However, at least 305,000 notices have been sent to policyholders.

"I don't think anybody is satisfied with 45,000 (responses)," said Brad Brady, an attorney for plaintiffs who sued Allied Mutual in 1998.

Attorneys said that policyholders, both for auto and home insurance, could receive as much as 40% of the premiums they paid in during a three-year period between 1990 and 1993.

Lawyers estimated that as many as 25% of potential claimants are from Iowa.

Polk County district Judge Donna Paulsen said she was satisfied that both sides have done their best to notify policyholders.