In a significant legal victory, AXA, a leading French insurer, secured a judgment worth approximately £675 million ($908 million) from a UK court against Santander, one of the world’s largest banks. This ruling, announced on July 25, 2025, stems from a long-running dispute concerning the mis-selling of payment protection insurance (PPI) policies. The case has its origins in the actions of GE Capital Bank, which sold the controversial policies before 2005. Santander later acquired GE Capital Bank in 2009, inheriting these liabilities.
The PPI scandal remains one of the most costly financial missteps in the UK’s history, leading to widespread compensation payouts to affected consumers. This latest court decision represents a critical step in resolving the outstanding financial issues associated with this affair.
Background and Scope of the Dispute
The legal battle centers on over 650,000 individual complaints regarding the PPI policies sold by GE Capital Bank, which had been part of General Electric Co. until it was acquired by Santander. The policies, which were often sold alongside loans, were later deemed to have been mis-sold to consumers who were not informed of the full terms and conditions or were sold products that were unsuitable for their needs.
The dispute was initially brought to court in 2021 by AXA, which inherited the liabilities for these policies following its acquisition of two units from Genworth Financial in 2015. AXA argued that it was entitled to compensation for the considerable financial burden it faced due to the redress payments made to consumers affected by the mis-sold policies.
The case gained significant attention due to its association with one of the largest retail financial scandals in British history. Since the scandal broke, British banks have paid out approximately £40 billion in compensation to those who were mis-sold PPI. AXA itself had already paid nearly £500 million to settle claims and £70 million in relation to the associated complaints.
The Court’s Ruling: AXA’s Legal Victory
The ruling, delivered by Judge Julia Dias at the London High Court, confirmed that AXA was entitled to an indemnity from Santander Insurance Services UK Limited for the redress payments and related ombudsman fees. AXA’s lawyers, from the firm Quinn Emanuel, estimated the value of the ruling at £675 million, though AXA clarified that it would only receive a fraction of the awarded sum.
This reduction is due to Genworth Financial, which had already reimbursed AXA for a significant portion of the mis-sold PPI losses. In a statement, Genworth Financial confirmed that it expects to recover approximately $750 million, depending on the prevailing exchange rate at the time.
The court’s ruling marks a significant chapter in the ongoing saga of the PPI scandal, which has had lasting financial consequences for many of the UK’s leading banks and insurers. AXA’s legal victory is seen as a pivotal moment in the resolution of these long-standing claims, although it is expected that Santander will challenge the outcome.
Santander’s Response and Potential Appeal
In response to the ruling, Santander expressed disagreement with the judgment and confirmed that it is exploring the option of appealing the decision. A spokesperson for the bank stated, “We disagree with the outcome and are seeking to appeal the judgment.”
Santander also attempted to reassure investors and customers by emphasizing that the financial impact of the ruling would not be material to the bank. The spokesperson noted that provisions had already been made for this potential outcome, and any future legal actions were unlikely to affect the bank’s financial standing. Additionally, the bank stated that “no customers have suffered loss” as a result of the claims brought by AXA or the ruling itself.
Despite this stance, the case is likely to have lasting implications, as it highlights the ongoing legal and financial challenges that arise from the PPI mis-selling scandal.