Frensh insurer AXA has won a legal case in a London court, resulting in a ruling of approximately £680m (€781.53m) against Santander for the mis-selling of payment protection insurance (PPI).
The issue involved losses from mis-selling complaints related to PPI policies underwritten by two companies acquired by AXA from Genworth in 2015. These policies were originally sold by a company that Santander acquired in 2009.
The legal proceedings initiated by AXA in the High Court of London in 2021 were prompted by losses associated with more than 650,000 customer complaints regarding PPI policies, with banks having disbursed around £40bn in compensation, according to Reuters.
AXA, which assumed responsibility for these liabilities following its acquisition of two Genworth units in 2015, has already paid nearly £500m in consumer redress and over £70m related to complaints, Judge Julia Dias said in her ruling.
In her judgement, Judge Dias confirmed that AXA “has a valid claim for an indemnity” against Santander Insurance Services UK concerning the payments made for redress and fees associated with the ombudsman.
Legal representatives for AXA at Quinn Emanuel indicated that the ruling’s value is estimated at £675m.
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By GlobalDataHowever, an AXA spokesperson clarified that the company would only receive a portion of the total amount awarded, as Genworth has already compensated AXA for a significant share of the losses incurred from the mis-selling.
Genworth Financial stated that it anticipates receiving around $750m, contingent on the current exchange rate.
In response to the ruling, a spokesperson for Santander expressed disagreement with the court’s decision and indicated plans to appeal.
The spokesperson further stated: “We do not expect the net impact of the judgment to be material for Santander given provisions already made and the potential legal actions available.
“No customers have suffered loss as a consequence of the claim brought by AXA France or the judgment, nor does it impact upon past redress paid to customers for PPI complaints.”
