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IAG settles Credit Suisse Greensill claims tied to A$2.8bn
The settlement covers about A$2.8bn in claims plus interest, and IAG said it is not expected to materially affect its financial position or FY27 results due to recoveries and indemnities.
Insurance Australia Group has reached a confidential settlement with Credit Suisse entities over claims tied to the collapse of Greensill, as it moves to wind down a major trade credit insurance dispute, according to Reinsurance News.
IAG said its subsidiary, Insurance Australia Limited, agreed to settle the Credit Suisse proceedings in the Federal Court of Australia. The aggregate face value of the claims was approximately A$2.8bn plus interest, but the company said the settlement would have no material impact on its financial position or FY27 financial results, citing anticipated recoveries under insurance and reinsurance arrangements and other indemnities.
The dispute stems from insurance policies that were purportedly issued by BCC Trade Credit Pty Ltd on behalf of IAL to Greensill entities. BCC was an underwriting agency authorized to underwrite trade credit insurance on IAG’s behalf through IAL, and the settlement follows IAG’s May agreement to resolve separate proceedings brought by Greensill Bank AG and its insolvency administrator, which had a claimed face value of about A$4bn plus interest.