Iceland shrugs off loss of credit insurance cover saying it is ‘incredibly well positioned’ and expects to reinstate the policy soon
Iceland has said it is “incredibly well positioned” despite having its cover pulled from credit insurer Coface.
According to reports first published in The Sunday Times, the French insurer slashed cover for the discount grocer in December – following a similar move by Allianz and Atradidus.
“All credit insurers have reduced cover across UK food retail, not just Iceland, over the past 6 months, a spokesperson for Iceland said.
They continued: “There are many credit insurers in the market, and we know of over £150m of Iceland credit cover still available in the market.”
Iceland also told City PM, that Coface have confirmed they are already “looking to reinstate this cover”.
It comes as Iceland is set to post its third quarter results to its bondholders on Wednesday and the group has said it possesses “£200m of available liquidity”. .
Last August, Iceland fell to a £4.1m annual loss for the year to March 25, 2022, compared with a £73m pre-tax profit the previous year..
During the period the company was also forced to cut 1,400 jobs due to a change in consumer habits post-pandemic.
Iceland operates across over 900 stores in the UK.