THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
KNOWLEDGE CENTRE
PARTNER DATABASE
ABOUT US
CONTACT US
REGISTER

N Brown hit by £40 million compensation bill for 'flawed' insurance products

N Brown, the owner of Simply Be, JD Williams and Jacamo, has said it expects to face an exceptional cost of £40 million for customer compensation relating to insurance products.

FASHION

N Brown hit by £40 million compensation bill for 'flawed' insurance products

In a statement, N Brown said it had identified flaws in certain general insurance products which were provided by a “third party insurance underwriter” and sold by the group to its customers between 2006 and 2014.

The announcement follows a review prompted by a recent industry-wide request from the FCA that firms ensure that general insurance products and add-ons offer value for their customers. N Brown said the vast majority of the products were sold to the group's customers in the period leading up to, and including, 2011. Sales of the relevant products ceased in early 2014.

Following an assessment of the cost of potential customer redress, N Brown now expects to incur an exceptional cost in this year's income statement in the range of £35 million to £40 million.

The group will fund the compensation through existing resources.

N Brown said: “The group confirms that this matter will not impact its underlying operations, nor the risk profile of the group's current and future customer or debtor balances. The group continues to demonstrate strong underlying trading performance in line with its 20 June 2017 trading statement.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe for retail news

RETAIL EVENTS

TRB CONFERENCES
Retail Customer Engagement Summit
Retail Customer Engagement Summit
5 June 2018
Cavendish Conference Centre, London W1
The 9th Annual Retail Customer Engagement Summit
Dentons Future of Retail Law Conference 2018
Dentons Future of Retail Law Conference 2018
14th June 2018
The Altitude SW1P 4RS
Dentons Future of Retail Law Conference 2018
Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
TRB FORUMS
Mental Health & Wellbeing Forum
Mental Health & Wellbeing Forum
06 March 2018
TBC
Dr Shaun Davis aims to dig deeper into some of the steps a retail HR team can take to play their part in maintaining and improving the mental health and wellbeing of their staff.
Payment Roundtable 2018
Payment Roundtable 2018
18 April 2018
Hallam Conference Centre W1W 6JJ
Are you confident that your payment strategy is competitive and is future proof?