Insurance Australia Group said its Insurance Australia subsidiary agreed to settle Credit Suisse proceedings over losses connected with the collapse of Greensill Capital. The claimed amounts had an aggregate face value of about A$2.8 billion plus interest. The insurer did not disclose the settlement terms, citing confidentiality.
The proceedings related to trade-credit insurance policies purportedly issued by BCC Trade Credit on behalf of Insurance Australia to Greensill entities. Greensill Capital collapsed in 2021, prompting Credit Suisse to wind down about US$10 billion of funds linked to the supply-chain-finance company. UBS acquired Credit Suisse in 2023.
LEGACY CLAIMS NARROW
The agreement follows IAG’s May 2026 settlement of separate proceedings brought by the administrators of Greensill Bank. Those proceedings involved claimed amounts with an aggregate face value of about A$4 billion plus interest. Together, the two agreements resolve the Greensill Bank and Credit Suisse proceedings.
One set of proceedings remains open. IAG said claims brought by White Oak against Insurance Australia have an aggregate face value of about A$170 million plus interest. The group said the Credit Suisse settlement would not have a material impact on its financial results for the year ending June 2027.
MARKET OVERHANG EASES
IAG shares opened at A$7.95 on Friday, nearly 2% above Thursday’s close of A$7.80, before paring gains, Insurance Business reported. Citi analyst Nigel Pittaway said the settlement should lift the Greensill cloud over IAG’s shares, provided the group’s insurance, reinsurance and indemnity protections hold as expected.
The settlement closes the Credit Suisse strand of IAG’s Greensill litigation but does not eliminate the remaining legal exposure. IAG said Insurance Australia continues to defend the White Oak proceedings.