FBD shares drop following UK court ruling on Covid insurance Insurer facing higher payout in business interruption case taken by four publicans
Fri, Jan 15, 2021, 12:14 Updated: Fri, Jan 15, 2021, 18:06
FBD Holdings shares fell in Dublin on Friday as the insurer faces a higher-than-expected financial hit over Covid-19 business interruption if the High Court takes a similar stance to a ruling in the UK on Friday, according to analysts.
Small businesses, from restaurants to nightclubs and wedding planners to beauty parlours, on Friday won the right to insurance payouts in the UK after its supreme court ruled their policies should cover losses caused by coronavirus lockdowns. The UK Financial Conduct Authority (FCA) estimates that a combined £1.2 billion could now be paid out.
Insurance Post
Insurance Post staff
Free content: Access market and insurance reactions to the Supreme Court ruling that dismissed appeals against a High Court judgment on insurers paying out in Covid-related disruption on business interruption insurance policies and overturned the Orient Express ruling.
The Supreme Court dismissed insurers’ appeals in the Financial Conduct Authority’s business interruption test case on Friday, bringing to a close a six-month legal battle.
The court also “substantially” allowed the appeal of the FCA, which had been representing the interests of policyholders in the case.
It also overturned the landmark 2010
Orient-Express Hotels v Assicurazioni Generali ruling, concluding that it had been “wrongly decided.” Insurers had argued that the High Court’s judgment undermined the precedent set by the ruling.
The Supreme Court will issue its ruling on Friday morning in the Covid-19 business interruption legal case with up to 370,000 policyholders and their insurers
The Supreme Court is expected to hand down its judgment in the business interruption test case appeal on Friday 15 January, the Financial Conduct Authority has