JD Williams reaches £49.5 million settlement with Allianz Insurance
N Brown Group has reached a final settlement with Allianz Insurance following an extensive three year dispute regarding mis-sold payment protection insurance from JD Williams.
Between 1985 and 2015, JD Williams sold general insurance policies to its customers that were underwritten by Allianz. The Financial Ombudsman Service ruled that Allianz should be responsible for the PPI complaints from customers.
After paying out £27 million to customers that were mis-sold PPI, Allianz sued JD Williams, which subsequently led to a counterclaim that Allianz were also liable for PPI claims before 2005.
JD Williams has agreed to pay the Insurer a sum of £49.5 million, less than Allianz's £70 million final claim, by the end of January 2023. The settlement has been made without admission of liability.
N Brown has sufficient liquidity to meet the cash flow requirements of the settlement, including unsecured net cash of £82.9 million, access to a revolving credit facility of £100 million and an overdraft of £12.5 million.
In a statement, N Brown commented: “The settlement removes a significant element of uncertainty and distraction for JDW and allows the company to focus on creating shareholder value through its core business activities as it continues its transformation.”