Insurance Australia Group has agreed to settle Credit Suisse proceedings involving insurance policies linked to collapsed supply-chain finance firm Greensill Capital, resolving a large portion of litigation facing its Insurance Australia Ltd unit.
The aggregate face value of claims brought by Credit Suisse entities was about A$2.8 bn ($2 bn), plus interest, IAG said. Settlement terms remain confidential under the agreement between the parties.
IAG expects the settlement to have no material impact on its financial position or fiscal 2027 results. The insurer based that assessment on anticipated recoveries under insurance and reinsurance arrangements, together with other indemnities available to the group.
The Federal Court of Australia proceedings formed part of wider litigation against Insurance Australia Ltd and other parties over policies purportedly issued by BCC Trade Credit on IAL’s behalf to Greensill entities. The disputes followed the 2021 collapse of Greensill Capital, which generated losses across financial institutions and investment funds with exposure to the company.
The Credit Suisse settlement follows another agreement reached earlier in 2026.
In May, IAG announced that IAL had settled separate proceedings brought by Greensill Bank AG and its insolvency administrator, Dr Michael C. Frege. Those claims had an aggregate face value of about A$4 bn plus interest.
That earlier settlement also carried confidential terms and wasn’t expected to materially affect IAG’s fiscal 2026 financial position. Together, the two agreements remove much of the Greensill-related litigation previously facing IAL.
One dispute remains unresolved. White Oak entities continue proceedings against Insurance Australia Ltd, with claims carrying an aggregate face value of about A$170 mn plus interest. IAG said IAL continues to defend those proceedings.
Greensill Capital collapsed in 2021 after losing insurance coverage supporting parts of its supply-chain finance business.
The failure triggered losses for investors and lenders, followed by years of court proceedings involving insurers, financial institutions and other parties connected with Greensill transactions.
Credit Suisse had substantial exposure through investment funds linked to Greensill. The collapse led the bank to wind down about $10 bn of funds associated with the finance company, leaving investors seeking recovery through several legal channels.
IAG shares traded higher after the settlement announcement. The stock gained around 1% to A$7.87 in early Sydney trading, as investors assessed the reduction in legal exposure from the Credit Suisse proceedings.
The remaining White Oak case means IAG hasn’t fully closed its Greensill litigation. Still, the A$2.8 bn Credit Suisse settlement removes one of the largest outstanding claims connected with policies allegedly issued by BCC Trade Credit on behalf of IAL.
