IAG has reached a confidential agreement to settle legal proceedings brought by Greensill Bank AG and its insolvency administrator.

Litigation filed in the Federal Court after Greensill collapsed in 2021 related to trade credit insurance policies allegedly issued by underwriting agency BCC Trade Credit. IAG owned 50% of BCC but sold its holding to Tokio Marine Management (Australasia) on April 9 2019.

In an update to the Australian Securities Exchange today, IAG says the proceedings it has settled were a “subset of the litigation against [IAG] and other parties in the Federal Court ... relating to policies purportedly issued by BCC Trade Credit on behalf of [IAG] to Greensill entities”.

The insurer says the “aggregate face value of the claimed amounts” in these proceedings was about $4 billion plus interest. insuranceNEWS.com.au understands this figure includes claims against other parties including Tokio Marine and Marsh.

“The terms of the settlement are confidential … [It] will not have a material impact on its financial position or FY26 financial results, based on the settlement terms and anticipated recoveries,” the market update says.

Related proceedings brought by Credit Suisse and White Oak entities against IAG and other parties “remain on foot”, the insurer says.

IAG says the aggregate face value of claimed amounts in remaining proceedings is about $3 billion plus interest and it “continues to defend” this case.