A High Court judge has ruled that an American insurer – Genworth Financial – is legally liable for 90% of the £265 million cost of PPI policies mis-sold through Spanish-owned bank Santander.
The long-running dispute involved policies which were marketed by the bank, but underwritten by two Genworth subsidiaries – Financial Assurance Co. Ltd. and Financial Insurance Co. Ltd., also known as FICL and FACL.
It was further complicated because the two firms were taken over by the French insurance giant Axa in 2015.
Genworth had argued that Santander was liable to pay out successful PPI mis-selling claims because they marketed and sold the policies.
However, Axa claimed that the American company had promised to pay 90% of all relevant losses for PPI and could not pass on the liability to Santander.
After hearing evidence from all sides Judge Simon Bryan declared that Genworth was liable for 90% of the cost of their claims with the final amount of liability to be established in a damages trial to be held in March next year.
He also rejected a counter suit from Genworth that it was not liable for claims made under an agreement with Santander pledging not to demand damages from each other.