Credit Suisse-IAG settle Greensill case tied to A$2.8bn (US$1.97bn) claim

Insurance Australia Group has agreed a confidential settlement with Credit Suisse entities in one of the largest remaining insurance disputes arising from the collapse of Greensill Capital, resolving proceedings carrying claimed amounts with an aggregate face value of about A$2.8bn, approximately US$1.97bn at 28 September exchange rates, plus interest.

The agreement concerns trade credit insurance policies purportedly issued by BCC Trade Credit on behalf of IAG subsidiary Insurance Australia Limited to Greensill entities. The settlement terms, including the amount actually being paid, have not been disclosed. IAG said the resolution is not expected to have a material effect on its financial position or FY27 results after anticipated insurance and reinsurance recoveries and other indemnities are taken into account.

The final agreement closes the uncertainty left by IAG’s earlier statement that no settlement had yet been finalised. At that stage, reports had suggested terms had been reached and a Federal Court trial had been cancelled, but IAG said the agreement was still not final. The 25 September announcement therefore marks a material change in legal status, converting the previously tentative settlement into a concluded agreement.

The distinction between the A$2.8bn claim and the confidential settlement value is important. The headline figure represents the aggregate face value of the amounts claimed in the Credit Suisse proceedings, not the amount IAG has agreed to pay.

The resolution removes another major component of the litigation generated by Greensill’s failure. IAG settled separate proceedings brought by Greensill Bank and its insolvency administrator in May involving claims with an aggregate face value of about A$4bn, approximately US$2.81bn at current exchange rates, plus interest.

White Oak proceedings remain unresolved. Those claims have an aggregate face value of approximately A$170m, equivalent to about US$119.4m, plus interest, and IAG said Insurance Australia Limited continues to defend them.

The development remains significant for receivables and supply chain finance because trade credit insurance formed part of the risk-transfer structure around assets financed through Greensill. The latest settlement removes a substantial legal dispute over that insurance architecture without publicly establishing what proportion of the underlying claims was ultimately recovered.