Insurance Australia Group (IAG) 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. over funds Greensill had lent to Katerra, a construction company backed by the Japanese group.
• UBS Group, 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 Ltd. 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 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)

Related:

• Insurance Australia Says Greensill Settlement Isn’t Finalized
• Insurance Australia Settles in Greensill Federal Court Case
• Greensill Bank Sues UK Government for $441 Million Over COVID Loan Guarantees
• Credit Suisse, SoftBank Fight Over Greensill Losses in $440 Million London Lawsuit

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