Santander has been granted permission by the UK Court of Appeal to challenge a High Court ruling that ordered it to pay approximately £680 million ($911 million) in damages. This decision allows Santander to appeal the July 25 judgment which found the bank liable for losses incurred by certain AXA group companies. The case concerns Payment Protection Insurance (PPI) policies that were underwritten by entities acquired by AXA from Genworth in 2015 and originally distributed by a company that Santander acquired in 2009.
AXA had initiated proceedings in 2021, arguing it had inherited significant liabilities from the acquired Genworth businesses, having already paid nearly £500 million in consumer redress and a further £70 million in ombudsman-related costs. The original High Court ruling, which was delivered by Judge Julia Dias, concluded that AXA had a valid claim for indemnity against Santander Insurance Services UK, with AXA's legal team estimating the ruling's value at approximately £675 million. Genworth Financial, under a prior agreement, expects to receive around $750 million if the ruling is upheld.
The appeal process is anticipated to take between 12 to 18 months to reach a determination. A spokesperson for Santander expressed disagreement with the initial court decision and stated that the bank plans to appeal, adding that they do not expect the net impact of the judgment to be material given provisions already made and potential legal actions available. This ongoing legal dispute is one of the largest remaining stemming from the UK's long-running PPI mis-selling scandal.
