Insurance Australia Group Settles $2 Billion Credit Suisse Lawsuit Linked to Greensill
Key Details of the Settlement and Related Proceedings
Sept 25 (Reuters) - Insurance Australia Group said on Friday its unit had agreed to settle a A$2.8 billion ($1.96 billion) Credit Suisse lawsuit over losses linked to finance firm Greensill Capital.
Settlement Terms and Confidentiality
• The insurer did not disclose the terms of the settlement citing confidentiality.
Financial Details and Claims
Aggregate Value of Claims
• The aggregate face value of the claimed amounts in the Credit Suisse Proceedings was about A$2.8 billion plus interest, Insurance Australia said.
Policies and Involved Entities
• The proceedings relate to policies issued by Insurance Australia's unit BCC Trade Credit to Greensill entities.
Related Lawsuits and Industry Impact
Previous Settlements
• The settlement comes just months after Insurance Australia agreed to settle a A$4 billion lawsuit by the administrators of Greensill Bank.
Greensill Capital Collapse and Market Effects
• The 2021 collapse of Greensill Capital led Credit Suisse to wind down $10 billion in funds linked to the firm.
Other Legal Proceedings
SoftBank and Katerra Lawsuit
• 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 Response
• UBS Group, which took over Credit Suisse after its 2023 collapse, did not immediately respond to a Reuters request for comment.
White Oak Proceedings
• Insurance Australia said the remaining proceedings brought by White Oak against its unit Insurance Australia Limited remain ongoing, with the aggregate face value of claim amounts at nearly A$170 million.
Financial Impact and Currency Note
• The insurer said the Credit Suisse settlement would not have a material impact on its 2027 financial results.
($1 = 1.4261 Australian dollars)
(Reporting by Nichiket Sunil in Bengaluru; Editing by Jonathan Ananda)
