Brown (N.) Group PLC Historic Insurance Products - Customer Redress (9212K)
July 13 2017 - 2:00AM
UK Regulatory
TIDMBWNG
RNS Number : 9212K
Brown (N.) Group PLC
13 July 2017
July 13, 2017
N BROWN GROUP PLC
HISTORIC GENERAL INSURANCE PRODUCTS - POTENTIAL CUSTOMER
REDRESS
N Brown Group Plc (the "Group") today announces that it has
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. This 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. The vast majority of these 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, the Group expects to incur an exceptional cost in this
year's income statement in the range of GBP35 million to GBP40
million. However, the Group anticipates that there may be
mitigating actions to reduce the overall net cost. The cashflow
impact of this is forecast to occur from FY19 onward, and the Group
anticipates funding the full cost of customer redress from existing
resources.
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.
Ends
For further information:
N Brown Group
Craig Lovelace, CFO 0161 238 2338
Theresa Casey, Company Secretary 0161 238 1845
MHP
John Olsen / Simon Hockridge 0203 128 8100
/ Gina Bell NBrown@mhpc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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