Insurance Australia Group settles $2 billion Credit Suisse lawsuit over Greensill collapse

By Reuters News

Sept 25 (Reuters) - Insurance Australia Group IAG.AX said on Friday its unit had agreed to settle a A$2.8 billion ($1.96 billion) Credit Suisse lawsuit over losses linked to finance firm Greensill Capital.

Here are some key details:

  • The insurer did not disclose the terms of the settlement citing confidentiality.

  • The aggregate face value of the claimed amounts in the Credit Suisse Proceedings was about A$2.8 billion plus interest, Insurance Australia said.

  • The proceedings relate to policies issued by Insurance Australia's unit BCC Trade Credit to Greensill entities.

  • The settlement comes just months after Insurance Australia agreed to settle a A$4 billion lawsuit by the administrators of Greensill Bank.

  • The 2021 collapse of Greensill Capital led Credit Suisse to wind down $10 billion in funds linked to the firm.

  • Last year, Credit Suisse had lost a $440 million lawsuit against SoftBank Group Corp 9984.T over funds Greensill had lent to Katerra, a construction company backed by the Japanese group.

  • UBS Group, which took over Credit Suisse after its 2023 collapse, did not immediately respond to a Reuters request for comment.

  • Insurance Australia said the remaining proceedings brought by White Oak against its unit Insurance Australia Limited remain ongoing, with the aggregate face value of claim amounts at nearly A$170 million.

  • The insurer said the Credit Suisse settlement would not have a material impact on its 2027 financial results.

($1 = 1.4261 Australian dollars)

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