Article ID: 410941bdd761e9e26807e1737784fc6a35dc1eade19ea2000e43a157a0aa064a
Source ID: primary:reinsurancene.ws
Published At: -
Extraction Method: trafilatura
URL: https://www.reinsurancene.ws/iag-reaches-settlement-over-a2-8bn-credit-suisse-greensill-claims/
Body Text
Insurance Australia Group (IAG) has reached a confidential settlement with Credit Suisse entities over approximately A$2.8bn of claims arising from the collapse of Greensill, in the latest step towards winding down a major trade credit insurance dispute. IAG said in a new update today that its subsidiary Insurance Australia Limited (IAL) had 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, although IAG said the settlement would have no material impact on its financial position or FY27 financial results because of anticipated recoveries under insurance and reinsurance arrangements and other indemnities. As a reminder, the litigation relates to policies purportedly issued by BCC Trade Credit Pty Ltd on behalf of IAL to Greensill entities. BCC was an underwriting agency authorised to underwrite trade credit insurance on IAG’s behalf through IAL. IAG sold its 50% interest in BCC to Tokio Marine Management (Australasia) with effect from 9 April 2019. Under transitional arrangements following the sale, new policies were underwritten by IAL up to 30 June 2019, with Tokio Marine & Nichido Fire Insurance retaining the risk on those policies, net of reinsurance. IAG has also said it had extensive reinsurance in place and agreements with Tokio Marine covering any remaining exposure to trade credit insurance written by BCC on behalf of IAL. IAG has previously said these arrangements leave it with no net insurance exposure to the BCC trade credit policies. The remaining Greensill-related proceedings brought by White Oak have an aggregate face value of approximately A$170m plus interest, and IAL continues to defend those claims.
Metadata (JSON)
{
"score": 4.3875
}