N Brown shares jump as it settles three year legal battle with insurer Allianz for £49.5m
NBrown shares jumped after it settled a three-year legal battle with Allianz for £49.5million.
The retailer behind brands including Simply Be and JD Williams said the settlement with the insurance giant removes a ‘significant’ distraction for bosses.
The £49.5million sum was more than the £25.5million NBrown had set aside, but the business said it will be able to pay by the end of the month. It is also less than Allianz’s £70million claim.
Settlement: N Brown brand JD Williams – whose advertising features Davina McCall (pictured) – sold insurance policies to customers underwritten by Allianz between 1985 and 2015
Shore Capital retail analyst Clive Black said the settlement lifts ‘a cloud’ from the horizon for NBrown.
Shares rose 6.3 per cent, or 1.6p, to 27p. JD Williams – whose advertising features Davina McCall – sold insurance policies to customers underwritten by Allianz between 1985 and 2015.
The legal dispute began in January 2020 when Allianz sued JD Williams after being forced to pay £27million to its customers who were mis-sold payment protection insurance (PPI).
NBrown said yesterday: ‘The settlement removes a significant element of uncertainty and distraction for JDW.’ The settlement was made without any admission of liability.
The retailer said it has £82.9million in cash reserves and access to £112.5million of loans, meaning it will be in a ‘strong’ financial position after the settlement.
‘A cloud has been hanging over the NBrown Group for some time,’ Black said. ‘It can now press on, unencumbered by this distraction.