(RTTNews) - Genworth Financial Inc. (GNW) Monday said it has reached a settlement agreement with AXA to settle the dispute between them relating to liability for payment protection insurance mis-selling losses.
Genworth has agreed to pay AXA £100 million, or approximately $125 million, by July 23, 2020. This amount is in addition to a £100 million interim cash payment Genworth made to AXA in January 2020 and expensed in the fourth quarter of 2019.
Genworth and AXA agreed to the settlement following the High Court's liability judgment dated December 6, 2019 and prior to the High Court issuing its judgment on damages.
The case involves losses incurred from mis-selling complaints for PPI underwritten by two companies that AXA acquired from Genworth in 2015. The policies were sold from 1970 through 2004. The court ruled that Genworth was obligated to pay AXA for its losses, per the terms of the sale and purchase agreement.
In addition, Genworth also has agreed to issue a secured promissory note to AXA, pursuant to which Genworth has agreed to make deferred cash payments totaling about £317 million in two installments.
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