Insurance Australia Settles in Greensill Federal Court Case

Insurance Australia Group Ltd. said it has agreed to a settlement of proceedings brought by Greensill Bank AG and its insolvency administrators.

IAG said the settlement won’t have a material impact on its financial position, according to a statement on Friday. Terms of the settlement are confidential, it said.

The Greensill Bank proceedings are a subset of the litigation against Insurance Australia and other parties in the Federal Court of Australia. They relate to policies issued by BCC Trade Credit Pty on behalf of Insurance Australia to Greensill entities. The face value of the claimed amounts was about A$4 billion ($2.9 billion), the statement said.

The remaining proceedings brought by Credit Suisse and White Oak entities against Insurance Australia and other parties remain ongoing. The aggregate face value of those claims is around A$3 billion and Insurance Australia continues to defend those proceedings.

Greensill, once valued at $3.5 billion and founded by Lex Greensill, collapsed into insolvency in March 2021, sparking myriad legal disputes and regulatory investigations.

Photograph: Pedestrians walk past the IAG House building, where the Insurance Australia Group Ltd. headquarters is located, in Sydney. Photo credit: Brendon Thorne/Bloomberg