IAG settles $2.8B Credit Suisse case

• IAG subsidiary settled Federal Court litigation with Credit Suisse over Greensill trade credit insurance policies.
• The settlement will not materially impact IAG's financial position or FY27 results.
• IAG continues to defend remaining Greensill litigation with White Oak, totalling $170 million.

Insurance Australia Group (ASX:IAG) subsidiary Insurance Australia reached a confidential settlement in Federal Court proceedings brought by Credit Suisse entities involving $2.8 billion in claimed amounts.

The resolution clears a legal dispute regarding trade credit insurance policies purportedly issued by BCC Trade Credit on behalf of Insurance Australia Limited to Greensill entities.

IAG stated that the terms of the settlement are confidential.

Under the confidential deal terms, IAG confirmed the settlement will not materially impact its financial position or FY27 financial results due to anticipated insurance, reinsurance, and indemnity recoveries.

Following the announcement, the IAG share price was down at $7.82.

This deal follows a previous settlement with Greensill Bank in May that resolved claimed amounts of approximately $4 billion.

IAG continues to defend remaining proceedings brought by White Oak entities, which carry an aggregate face value of roughly $170 million plus interest.