Credit Suisse has secured an $800 million settlement related to the collapse of Greensill Capital, with insurance broker Marsh agreeing to pay the largest share. The settlement, reached last month just before an Australian trial was set to begin, resolves a substantial portion of outstanding insurance litigation connected to Greensill’s downfall.
The settlement also includes contributions from Insurance Australia Group (IAG) and Tokio Marine, insurers that underwrote policies protecting Greensill’s complex financial products against losses. The total claim from a Credit Suisse investment fund linked to the now-defunct Swiss bank amounted to approximately A$2.8 billion ($1.9 billion).
Greensill Capital, which collapsed in 2021, had marketed investment products based on corporate invoices, purportedly secured by insurance. However, investigations revealed that the company also extended loans based on anticipated future sales, a practice that drew scrutiny, particularly given allegations of invoice fraud involving major borrowers such as the metals empire controlled by Sanjeev Gupta. Greensill’s collapse triggered significant financial and political fallout, affecting investors worldwide, including clients of Credit Suisse, and entangling backers like Japanese conglomerate SoftBank and former UK Prime Minister David Cameron.
Marsh, Greensill’s longtime insurance broker responsible for arranging coverage, will shoulder a larger portion of the settlement than the insurers, according to individuals familiar with the matter. This allocation is notable, as brokers typically facilitate insurance but do not bear the primary financial burden of claims. Marsh was not initially named in the Australian legal proceedings but was added in 2023 after Credit Suisse accused the broker of making misleading statements and omissions.
In its third-quarter financial results, Marsh disclosed a $569 million charge related to litigation over Greensill, after accounting for insurance recoveries. This amount encompasses legal costs and settlement expenses linked both to the Credit Suisse agreement and a separate settlement with Greensill Bank.
Previous settlements have addressed other claims related to Greensill’s trade finance operations. In May 2024, a similar resolution was reached concerning a roughly A$4 billion claim from Greensill’s defunct German banking unit. Meanwhile, administrators managing Greensill’s insolvency reported in April 2024 that $8.4 billion of $17.7 billion in investments remained unrecovered.
The insurers involved have provided limited commentary on the settlement. Tokio Marine has stated it does not expect the settlement to have a “material impact” on its financial results, while IAG has made similar assurances about its financial position. Berkshire Hathaway, which reinsures much of the risk originally taken on by IAG, is reportedly expected to cover a part of the settlement. None of the main parties, including Marsh, IAG, Credit Suisse, or Berkshire Hathaway, have publicly commented on the details of the settlement. Tokio Marine declined to disclose specific terms.
The agreement comes as a significant step toward resolving the complex legal and financial challenges arising from Greensill’s abrupt failure, which has had far-reaching implications across the global financial sector.