Santander has won a long-running £677mn legal battle against Axa over UK payment protection insurance mis-selling after the Court of Appeal overturned a High Court judgment that had required the bank to reimburse the insurer. The dispute stems from retailer-branded credit card policies sold by GE Capital, whose lending arm kept most premiums while the insurance arm bore liability, later inherited by Axa. Judges Lady Justice Cockerill, Lord Justice Lewison, and Lord Justice Holgate ruled the 2000 agency agreement was not retrospective, setting aside the earlier ruling.

Axa said it is considering further appeal to the UK Supreme Court and called the financial impact immaterial, noting Genworth had already reimbursed most of its PPI costs. Santander welcomed the judgment, stating Axa must repay the substantial majority of the amount previously paid, plus interest and costs, with Santander expected to recover about 85% of the £677mn held in escrow. Axa has 28 days to decide on Supreme Court appeal in a case running over a decade.