Claims Direct issues third profits warning

A third profits warning has been issued by Claims Direct, looking to a loss of £20mn for the year ended 31 March 2001 rather than the £20mn profit predicted by auditors on flotation in July last year. The loss reflects £15mn premium paid for long-term insurance cover and £5mn in ex-gratia payments. Despite the recent ruling in Callery v Gray in Chester county court, allowing recovery of a substantial success fee and an LEI premium although the claim was settled before issue of proceedings, insurers are continuing to refuse to reimburse premiums – in part or total.