Genworth Financial Inc. to Receive $750 Million from UK PPI Court Ruling

Genworth Financial, Inc., a U.S.-based financial institution specializing in insurance and financial solutions, is poised to receive approximately $750 million following a favorable UK court ruling. The judgment involves Banco Santander SA, which was found liable for losses related to the mis-selling of Payment Protection Insurance (PPI) policies before 2005. These policies were sold by GE Capital Bank, acquired by Santander in 2009, and underwritten by two Genworth units sold to Axa SA in 2015.

The UK High Court ruled that Santander is responsible for Axa’s losses due to the mis-selling of these policies. The court awarded Axa damages, interest, and costs totaling about £680 million ($911 million). As part of a prior agreement with Axa, Genworth expects to receive the $750 million, significantly impacting its financial position.

This development follows Genworth’s statement on the ruling, highlighting the company’s role in the legal proceedings and the favorable outcome for AXA. The court’s decision underscores Santander’s liability for the mis-selling, marking a significant financial recovery for Genworth.

Market Reaction and Stock Performance

The court ruling has positively influenced Genworth’s stock performance. The company’s shares, trading on the New York Stock Exchange, closed at $8 on July 24, 2025, aligning with its 52-week high of $8.08. The market capitalization stands at $3.09 billion, with a price-to-earnings ratio of 14.18. The anticipated $750 million payment is expected to bolster investor confidence and potentially drive further gains in the stock price.

Operational Impact and Future Outlook

Genworth Financial, headquartered in Richmond, Virginia, offers a range of products, including life insurance, long-term care insurance, and mortgage guarantee insurance. The company’s global presence is facilitated through its website, www.genworth.com . The financial boost from the UK court ruling is likely to enhance Genworth’s operational capabilities and strategic initiatives.

Trading Suspension

In related news, Genworth Financial’s specific instrument, GENWORTH FIN. DL-,001 GGK (ISIN: US37247D1063), has been suspended with immediate effect. This suspension is part of broader market activities and does not directly impact the company’s overall financial health or the anticipated $750 million payment.

Overall, the UK court ruling represents a significant financial recovery for Genworth Financial, reinforcing its market position and providing a substantial boost to its financial outlook.