AXA to pay out on thousands of BI policies for restaurants

AXA France has made an offer to settle thousands of non-damage business interruption policies with restaurants in France relating to enforced closures due to COVID-19.

The move is significant because a lack of clarity remains over whether it should settle the claims, pending judicial rulings.

AXA France said it was making the settlement offer to 15,000 restaurant owners in the “context of continuing judicial uncertainty”.

AXA estimates the cost of these settlements to be ca. €0.3 billion, gross of tax and before reinsurance. The cost of the settlements, net of tax and after reinsurance, is expected to be offset by favorable developments in 2021 related to Covid-19, in France and Europe, AXA said.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.