Insurance Australia Group Ltd. said it has agreed to a settlement of proceedings brought by Greensill Bank AG and its insolvency administrators.
IAG said the settlement won’t have a material impact on its financial position, according to a statement on Friday. Terms of the settlement are confidential, it said.
The Greensill Bank proceedings are a subset of the litigation against Insurance Australia and other parties in the Federal Court of Australia. They relate to policies issued by BCC Trade Credit Pty on behalf of Insurance Australia to Greensill entities. The face value of the claimed amounts was about A$4 billion ($2.9 billion), the statement said.
The remaining proceedings brought by Credit Suisse and White Oak entities against Insurance Australia and other parties remain ongoing. The aggregate face value of those claims is around A$3 billion and Insurance Australia continues to defend those proceedings.
Greensill, once valued at $3.5 billion and founded by Lex Greensill, collapsed into insolvency in March 2021, sparking myriad legal disputes and regulatory investigations.
Photograph: Pedestrians walk past the IAG House building, where the Insurance Australia Group Ltd. headquarters is located, in Sydney. Photo credit: Brendon Thorne/Bloomberg
“Advances in technology, [artificial intelligence], and digital platforms are fundamentally changing how businesses operate, how clients expect to be served, and how value is created,” he said. “We made our first scaled AI investment in 2020, and as other leading organizations accelerate in this direction, we must continue to push the pace.”
Looking ahead, Williams said Acrisure will continue to combine human expertise with technology platforms, use AI and automation to cut down on manual work for faster results, and build digital capacity to serve clients.
“The greatest risks we face are not acting decisively enough and seeking comfort in the way things ‘used to be,'” Williams wrote.
“Leveraging technology must be the core of how we operate, how we grow, and how we delver value to clients every day,” he explained to employees, adding that North America insurance operations will organize “more intentionally around our lines of business.”
