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N Brown shares rise as it settles three-year legal battle with insurer Allianz for £49.5 million
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NBrown shares rose after it settled a three-year legal battle with Allianz for £49.5 million.
The retailer behind brands such as Simply Be and JD Williams said the settlement with the insurance giant removes a “significant” distraction for bosses.
The £49.5 million figure was more than the £25.5 million NBrown had set aside, but the company said it will be able to pay by the end of the month. It’s also less than Allianz’s £70 million claim.
Settlement: N Brown brand JD Williams — whose ads featured Davina McCall (pictured) — sold insurance policies between 1985 and 2015 to customers insured by Allianz
Shore Capital retail analyst Clive Black said the settlement lifts “a cloud” on the horizon for NBrown.
Shares rose 6.3 percent, or 1.6 pence, to 27 pence. JD Williams – whose ads featured Davina McCall – sold insurance policies to customers insured by Allianz between 1985 and 2015.
The legal dispute began in January 2020 when Allianz sued JD Williams after he was forced to pay £27 million to his customers who had been mis-sold payment protection insurance (PPI).
NBrown said yesterday, “The settlement removes a significant element of uncertainty and distraction for JDW.” The settlement was reached without any admission of liability.
The retailer said it has £82.9m in cash reserves and access to £112.5m in loans, meaning it will be in a ‘strong’ financial position following the settlement.
“There’s been a cloud over the NBrown Group for a while now,” Black said. “It can go on now, unencumbered by these distractions.