Axa has filed a suit against Genworth, which it claims owes it £31m
Axa is suing Genworth for £31m over Payment Protection Insurance (PPI) mis-selling losses that were never repaid.
The dispute began when Axa purchased the entire issued share capital of Financial Insurance Company Limited (FICL) and Financial Assurance Company Limited (FACL) from Genworth in September 2015, court documents show.
Both Genworth and Axa were aware of the likelihood of more PPI complaints prior to the sale. Therefore, Genworth agreed to pay 90% of all “relevant distributor mis-selling losses”, including any made after the sale of FICL and FACL, according to the court documents.
However, allegedly Genworth failed to stick to this agreement and has not yet paid Axa back.
Axa is claiming for an unsettled amount of £28.5m that Genworth has not yet returned to Axa. In addition, Axa is asking for £2.5m it alleges Genworth has recovered via purchase price adjustment, but not passed on. This brings the total to £31m. It is also claiming interest on these amounts.
When contacted by Insurance Times, Genworth and Axa declined to comment.