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.
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UBS Group, which took over Credit Suisse after its 2023 collapse, did not immediately respond to a Reuters request for comment.
Insurance Australia said th
e 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.
Kin insurance also recently announced planned rate decreases of as much as 20% for policyholders in three south Florida counties, the commissioner noted.
And Dairyland, a Wisconsin-based auto insurer owned by Sentry Insurance, this week announced it will start sending an estimated $30 million in dividend payments to Florida auto policyholders. That follows an average decrease in Dairyland’s Florida auto insurance rates of 14%. The rate cut an
d dividend payments are the result of legislative reforms and new stability in the Florida market, the company said in a statement.
The carrier did not provide the number of policyholders affected.
For Florida homeowners, the current, 30-day average requested rate decrease is 4.8%, compared to a 5.2% average increase in 2021, and an average approved rate increase of 15% in July 2022, Yaworsky said.
