The dispute centered on an agency agreement signed in 2000. Judge Sara Cockerill determined that the indemnity clause invoked by AXA applied only to acts or omissions occurring after the agreement took effect on December 1, 2000. Because the vast majority of the disputed store-card policies were sold before that date, the court found Santander was under no obligation to cover the associated costs.
Santander Wins Appeal to Reverse $912 Million PPI Payout to AXA
A London Court of Appeal ruling has cleared Banco Santander of a £677 million liability, overturning a previous judgment that required the Spanish bank to reimburse French insurer AXA for costs stemming from the mis-selling of payment protection insurance policies in the United States.
AXA inherited these liabilities following its 2015 acquisition of two units from Genworth Financial, while Santander had previously acquired the issuing entity, GE Capital Bank, in 2009. The appellate decision effectively reverses a High Court order that had awarded AXA roughly $912 million, including interest. Santander now expects AXA to repay the substantial majority of the funds already transferred under the initial ruling. While Genworth expressed disappointment with the decision, the court also dismissed AXA’s cross-appeal, leaving the insurer to reassess its legal position.
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