According to the Australian Financial Review (AFR), the insurer is facing almost $300 million in claims related to Greensill Capital which folded in March last year.
IAG finds itself in the middle of the affairs as it half-owned specialist agency, Bond and Credit Co. (BCC), which sold policies to Greensill entities.
However, in March 2021, IAG stated that it had no net insurance exposure to those trade credit policies, given it sold its 50 per cent interest in BCC on 9 April 2019 to Japanese insurer Tokio Marine Management “with the result of eliminating net exposure to trade credit insurance”.
The insurer said at the time that as part of a transition arrangement after the April sale, new policies were underwritten from the sale date up to 30 June 2019 and that Tokio Marine and Nichido Fire Insurance retained the risk for the policies.
An IAG spokesperson told ifa on Thursday, 3 March, that there has been “no change in our position” since then.
“We anticipated potential litigation by the administrators of Greensill or other claimants seeking legal confirmation of policy coverage and/or validity of claims,” the spokesperson said.
“We will be defending these matters. As the matters are before the Court we’re unable to provide further comment.”
A hearing to discuss four claims against IAG is reportedly set to go ahead on 7 April.
