Genworth Financial, Inc. (NYSE: GNW) today issued a statement in response to a UK High Court judgment in favor of AXA in the legal proceedings against Santander companies related to liabilities associated with the historic mis-selling of Payment Protection Insurance (PPI) policies. At issue were losses incurred from mis-selling complaints for PPI underwritten by two companies that AXA acquired from Genworth in 2015. The policies were sold by a company acquired by Santander in 2009.
The judgment finds Santander liable for AXA's losses resulting from Santander's mis-selling. At a hearing in London today, the Judge awarded AXA damages, interest, and costs of approximately £680 million, or $911 million, using a £1/$1.34 exchange rate.
Under prior agreements between Genworth and AXA, Genworth is entitled to share in funds that AXA recovers from third parties related to the mis-selling losses. If the judgment is paid in full and appeals, if any, are favorably resolved, Genworth would expect at that time to recover approximately $750 million, depending upon the applicable exchange rate at that time.
As previously shared, any recoveries have not been factored into Genworth's capital allocation plans. Genworth plans to deploy any recoveries in line with our stated capital allocation priorities: investing in growth through CareScout, returning cash to shareholders through our buyback program, and opportunistically paying down debt.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as expects, intends, anticipates, plans, believes, seeks, estimates, will or words of similar meaning including, but are not limited to, statements relating to any potential future judgment, recovery and/or payment amounts in connection with the AXA S.A. and Santander Cards UK Limited litigation (AXA Litigation), Genworth's planned use of proceeds from any recovery in connection with the AXA Litigation, including share repurchases, debt repurchases and investments in new businesses, and the future financial condition and liquidity of Genworth. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from those in the forward-looking statements based on the actual ultimate outcome of the AXA Litigation, including without limitation the resolution of any appeals, changes to future capital allocation decisions, and other factors and risks, including those listed in the risk factor section of Genworth's Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 28, 2025. Genworth undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.
About Genworth Financial
Genworth Financial, Inc ("Genworth") (NYSE: GNW) is a Fortune 1000 company focused on empowering families to navigate the aging journey with confidence, now and in the future. Headquartered in Richmond, Virginia, Genworth and its CareScout businesses provide guidance, products, and services that help people understand their caregiving options and fund their long-term care needs. Genworth is also the parent company and majority-owner of publicly traded Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider.
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Contacts:
Investors: Christine Jewell
InvestorInfo@genworth.com
Media: Evans Mandes
evans.mandes@genworth.com
