Retail group N Brown to pay £40m to customers

Plus size retailer N Brown is to fork out up to £40 million in compensation to customers who were sold “flawed” insurance products by the firm.

The products, provided by a third-party insurance underwriter, were sold to customers between 2006 and 2014.

N Brown said in a stock market announcement: “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 £35m to £40m.”

It follows a review prompted by a request from the Financial Conduct Authority that firms ensure general insurance products offer “value for their customers”.

It is not the first time the firm has taken a hit linked to financial products. Earlier this year the retailer, which is behind the Simply Be and Jacamo brands, was stung by exceptional costs relating to the mis-selling of PPI. It took a £25.2m hit to cover compensation for customers after the deadline for settling claims was set for August 2019.