Insurance Australia Group settles $2 billion Credit Suisse lawsuit over Greensill collapse (updated)

Softbank

25/09/2026 01:52

Adds share moves in bullet 10, analyst comments in 11
Sept 25 (Reuters) - Insurance Australia Group IAG.AX said on Friday it had agreed to settle an A$2.8 billion ($1.96 billion) Credit Suisse lawsuit over losses linked to the collapse of finance firm Greensill Capital.
Here are some key details:
The insurer did not disclose the terms of the settlement, citing confidentiality.
The aggregate face value of the claimed amounts in the Credit Suisse proceedings was about A$2.8 billion plus interest, Insurance Australia said.
The proceedings relate to policies issued by Insurance Australia unit BCC Trade Credit to Greensill entities.
The settlement comes just months after Insurance Australia agreed to settle a separate A$4 billion lawsuit brought by the administrators of Greensill Bank.
The 2021 collapse of Greensill Capital led Credit Suisse to wind down $10 billion in funds linked to the firm.
Last year, Credit Suisse had lost a $440 million lawsuit against SoftBank Group Corp 9984.T over funds Greensill had lent to Katerra, a construction company backed by the Japanese group.
UBS Group UBSG.S, which took over Credit Suisse after its 2023 collapse, did not immediately respond to a Reuters request for comment. 
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.
The insurer said the Credit Suisse settlement would not have a material impact on its 2027 financial results.
IAG shares were up 1.4% at A$7.905, as of 0025 GMT, while the benchmark S&P/ASX 200 .AXJO was down 0.4%.
Citi analysts said the settlement should effectively end the "Greensill overhang" surrounding the stock, assuming IAG's insurance, reinsurance and indemnity arrangements remain intact.
     
($1 = 1.4261 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru; Editing by Jonathan Ananda and  Subhranshu Sahu)
 ((Nichiket.Sunil@thomsonreuters.com;))