Insurance Australia Group Settles $2 Billion Credit Suisse Lawsuit Over Greensill Collapse

Insurance Australia Group (IAG) said on Friday it had agreed to settle an A$2.8 billion ($1.96 billion) Credit Suisse lawsuit over losses linked to the collapse of 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 unit BCC Trade Credit to Greensill entities. The settlement comes just months after Insurance Australia agreed to settle a separate A$4 billion lawsuit brought 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. 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 Ltd. 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. IAG shares were up 1.4% at A$7.905, as of 0025 GMT, while the benchmark S&P/ASX 200 was down 0.4%. Citi analysts said the settlement should effectively end the “Greensill overhang” surrounding the stock, assuming IAG’s insurance, reinsurance and indemnity arrangements remain intact. ($1 = 1.4261 Australian dollars) (Reporting by Nichiket Sunil in Bengaluru; editing by Jonathan Ananda and Subhranshu Sahu) Related: Insurance Australia Says Greensill Settlement Isn’t Finalized Insurance Australia Settles in Greensill Federal Court Case Greensill Bank Sues UK Government for $441 Million Over COVID Loan Guarantees Credit Suisse, SoftBank Fight Over Greensill Losses in $440 Million London Lawsuit Topics Lawsuits Australia Was this article valuable? Thank you! Please tell us what we can do to improve this article. Thank you! % of people found this article valuable. Please tell us what you liked about it. Here are more articles you may enjoy. Interested in Lawsuits? Get automatic alerts for this topic.