Marsh, the world's biggest insurance broker, will pay the largest share of an $800 million settlement with Credit Suisse over the Greensill Capital collapse, according to sources. Insurance Australia Group and Tokio Marine will also contribute to the A$2.8 billion ($1.95 billion) claim from a defunct Swiss bank investment fund. Marsh, Greensill's former broker who arranged the coverage, will minimize payouts from the insurers that provided the policies.
The settlement was finalized last month just before a high-stakes Australian trial where fraud claims were set to be heard. It resolves the bulk of outstanding insurance litigation related to Greensill's demise, following a similar May agreement addressing a A$4 billion claim from the German banking unit. Greensill's 2021 collapse triggered a financial and political scandal involving backers like SoftBank and former UK Prime Minister David Cameron.
Investors lost billions on products pitched as safe and insured. Credit Suisse was forced into a 2023 rescue by UBS. In April 2024, administrators disclosed $8.4 billion remained unrecovered of $17.7 billion in investments.
UBS offered former Credit Suisse clients 90 percent of their invested funds in a $10 billion Greensill-linked suite. Marsh recorded a $425 million gross liability in Q1 results reflecting the settlement and litigation costs. Greensill relied on the Bond & Credit Co agency for $10 billion of coverage.
Tokio Marine fired a BCC executive in 2020 for providing coverage beyond authority, contributing to the firm's collapse.
Source: Financial Times Companies · Summarized by HeadlinesBriefing