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Genworth Issues Statement on UK Court Approval of Santander Appeal Request

via Business Wire

Genworth Financial, Inc. (NYSE: GNW) today issued a statement following the UK Court of Appeal’s decision to grant Santander’s request for permission to appeal the High Court’s July 25 ruling in favor of certain companies in the AXA group (the claimants) regarding liabilities tied to the historic mis-selling of Payment Protection Insurance (PPI) policies. At issue were losses incurred from mis-selling complaints for PPI underwritten by the claimants, who were acquired from Genworth in 2015. The policies were distributed by a company acquired by Santander in 2009.

In the July 25 judgment and order, the High Court found Santander liable for the claimants' losses and awarded the claimants approximately £680 million (or $911 million, based on a £1/$1.34 exchange rate) in damages, interest, and costs. Santander subsequently applied for permission to appeal, and yesterday the Court of Appeal granted that request. The case will now proceed to a determination by the Court of Appeal which is expected to take approximately 12 to 18 months. Under prior agreements between, amongst others, Genworth and the claimants, Genworth is entitled to a share of any funds the claimants recover from third parties in relation to PPI-related losses.

As previously shared, any potential litigation recoveries have not been factored into Genworth’s capital allocation plans. Any proceeds received will be deployed in line with Genworth’s capital allocation priorities: investing in growth through CareScout, returning capital to shareholders through its buyback program, and opportunistically reducing 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 future judgment or potential litigation recovery amounts in connection with the AXA S.A. and Santander Cards UK Limited litigation (the Litigation), and Genworth’s planned use of proceeds from any recovery in connection with the 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 Litigation, including without limitation the resolution of the appeal, significant delays or any other adverse development during the appeal, 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. (NYSE: GNW) is a publicly traded holding company headquartered in Richmond, Virginia. Through its family of brands—including CareScout, Genworth, and Enact—Genworth uses its more than 150 years of experience to help families navigate the aging journey with clarity and confidence, offering guidance, products, and services that support caregiving decisions, long-term care planning, and the financial challenges of aging. Genworth is the majority owner of Enact Holdings, Inc. (Nasdaq: ACT), a leading U.S. mortgage insurance provider. For more information, visit https://www.genworth.com.

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