American Fidelity Assurance Co. said Friday that it was "astonished” by a jury verdict ordering the Oklahoma City insurance company to pay $10.8 million for improperly reducing the benefit owed to the mother of a policy holder who died.

"We are astonished in this case and believe the outcome is unjust and unwarranted,” the company said in a statement issued Friday afternoon. "Without question, the $10.8 million...