Insurance Australia Group settles $2 billion Credit Suisse lawsuit over Greensill collapse
UBS•Insurance Australia Group agreed to settle Credit Suisse’s A$2.8 billion ($1.96 billion) lawsuit over losses linked to Greensill Capital’s collapse. The insurer did not disclose the terms and said the settlement would not materially affect its 2027 financial results.
1. Settlement terms undisclosed
The proceedings concerned policies issued by Insurance Australia unit BCC Trade Credit to Greensill entities. Insurance Australia said the claimed amounts had an aggregate face value of about A$2.8 billion plus interest; it did not disclose the settlement terms, citing confidentiality.
2. Other Greensill claims
The settlement follows a separate agreement by Insurance Australia to resolve a A$4 billion lawsuit brought by Greensill Bank administrators. Proceedings brought by White Oak against Insurance Australia Limited remain ongoing, with claimed amounts totaling nearly A$170 million.
3. Financial impact
Insurance Australia said the Credit Suisse settlement would not have a material impact on its 2027 financial results. Citi analysts said it should effectively end the “Greensill overhang” surrounding the stock, assuming the insurer’s insurance, reinsurance and indemnity arrangements remain intact.
