AXA France has today announced a settlement offer of €300 million, gross of tax and before reinsurance, to 15,000 restaurant owners who hold non-damage business interruption (BI) policies.
The settlement applies to the 15,000 restaurant owners who hold AXA France’s “standard policy” with extended cover for BI losses linked to administrative closure.
AXA explains that the cost of the settlements, net of tax and after reinsurance, is expected to be offset by favourable developments in 2021 related to the pandemic, in France and Europe.
The settlement is deigned to cover an amount equivalent to 15% of the turnover of catering activity over the periods covered by the administrative measures precluding admission of the public, announced on 14th March, 2020 and 29th October, 2020, and subject to duration and amount limits provided for by the contract.
“AXA has played its role and acted in a responsible manner during the pandemic, supporting hundreds of thousands of customers, and making a significant contribution to the financing of the economic recovery. We regret the misunderstandings with some of our restaurant clients, especially given this sector was particularly hard hit during the sanitary crisis,” said Patrick Cohen, Chief Executive Officer (CEO) of AXA France.
“As restaurants are finally allowed to welcome their customers again, we are taking this initiative so that everyone can look to the future and focus on the restart of economic activity. Such a large initiative is unprecedented for AXA France. It will be implemented throughout the country by our 3,000 tied agents and all our distribution partners with the support of our teams,” he added.
AXA France states that it remains convinced by the clarity of the guarantees of the contracts in question, which do not cover administrative closures, as recognized by the Bordeaux Court of Appeal this week.
The settlement offer is expected to be open from 21st June until 30th September, 2021, with clients invited to liaise with their usual AXA representative.
According to AXA France, this “amicable solution” aims to allow everyone to look forward and enables its restaurant clients to fully focus on recovery.