IAG settles $2.8bn lawsuit with Credit Suisse

Insurance Australia Group Limited (IAG) has announced it has agreed to a settlement in the proceedings brought by Credit Suisse against it in the Federal Court, over the collapse of Greensill Capital.

IAG said the terms of the settlement are confidential, but Credit Suisse was suing IAG for around $2.8 billion, plus interest.

IAG said that the settlement of the Credit Suisse Proceedings would not have a material impact on its financial position or FY27 financial results, based on anticipated recoveries including from insurance and reinsurance arrangements and other indemnities.

The settlement comes after IAG also agreed ​to settle a separate $4 billion lawsuit brought by the administrators of Greensill Bank.

Greensill Capital was a global supply chain finance firm founded by Australian financier Lex Greensill that collapsed into insolvency in March 2021.

In October 2022 Credit Suisse announced it would undergo a restructure, saying the firm had "become unfocused".

In September 2024, UBS and Credit Suisse completed their merger, seeing Credit Suisse come under the UBS umbrella.

The collapse of Greensill Capital led Credit Suisse to wind down $14 billion in funds ​linked to the firm, through invoices Greensill Capital had purchased from suppliers to companies.

Credit Suisse was suing IAG, claiming it should have covered the debts as Greensill's main insurer, when the company collapsed.