Santander wins UK appeal over $912 million AXA US PPI ruling

LONDON, Sept 15 (Reuters) - Santander won its appeal on Tuesday against a London court ruling that had ordered it to pay about £677 million ($912 million) to French insurer AXA for costs arising from the mis-selling of payment protection insurance in the U.S. 

London's Court of Appeal overturned a High Court judgment last year, finding that Spain's Santander was not obliged under a 2000 agency agreement to reimburse AXA for costs linked to store-card PPI policies sold before 2005.

AXA inherited liabilities for the policies through its 2015 acquisition of two Genworth units. Santander acquired GE Capital Bank, which sold the insurance products, in 2009.

In a ruling delivered by Judge Sara Cockerill, the appeal court said the indemnity clause relied on by AXA covered acts or omissions occurring after the agency agreement took effect on December 1, 2000, and not policies sold beforehand. 

The ruling reverses the previous judgment that awarded AXA an indemnity of about £677 million including interest, with Santander having said previously that roughly 85% of that amount related to policies sold before the agreement had been signed. 

The Court of Appeal also dismissed AXA's cross-appeal, seeking to recover some of its PPI compensation costs.

Santander welcomed the ruling and said AXA would now have to repay "the substantial majority of the amount" it had paid.

Genworth's President and CEO Tom McInerney said while it was "very disappointed" by the ruling, it would evaluate the company's next steps, including options for further appeals.

($1 = 0.7421 pounds) 

(Reporting by Sam Tabahriti; Editing by Alexander Smith)