IAG says its move to settle in a $4 billion lawsuit brought by Greensill Bank AG and its insolvency administrator “will not have a material impact” on the insurer’s financial position or 2025-26 results.

The litigation related to trade credit insurance policies allegedly issued by underwriting agency BCC Trade Credit, of which IAG owned 50% before selling its holding to Tokio Marine Management (Australasia) on April 9 2019.

The lawsuit was filed in the Federal Court after Greensill collapsed in 2021.

In an update to the Australian Securities Exchange last Friday, IAG said the proceedings it 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”.

insuranceNEWS.com.au understands the $4 billion “aggregate face value of the claimed amounts” includes claims against other parties including Tokio Marine and Marsh.

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

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