Insurance Australia agrees to settle $2 bln Credit Suisse Greensill lawsuit

Insurance Australia Group (IAG) has reached a settlement with Credit Suisse entities over insurance policies connected to Greensill, according to a press release on Friday. The total face value of claims in the Credit Suisse proceedings was approximately A$2.8 billion ($2.0 billion), including interest. The settlement terms remain confidential, and IAG stated that the agreement would not significantly impact its financial position or fiscal 2027 results, assuming recoveries from insurance and reinsurance arrangements and other indemnities.

IAG's shares rose by 1% to A$7.87 in early trading on Friday. The litigation involved IAG and other parties in Australia's Federal Court regarding policies allegedly issued by BCC Trade Credit on behalf of IAG to Greensill entities. A previous settlement of proceedings brought by Greensill Bank and its insolvency administrator was announced in May.

White Oak's separate proceedings, totaling about A$170 million plus interest, are still ongoing. IAG confirmed that IAG Ltd continues to defend those proceedings. The Greensill-related litigation originated from the 2021 collapse of the supply-chain finance firm, which caused losses for investors and lenders.