IAG is dealing with $7 billion in claims related to insurance provided by a former subsidiary including policies issued to collapsed financier Greensill Capital.
However, it has no net exposure to any liabilities stemming from its former agency Bond & Credit Co.IAG has disclosed $7 billion in legal claims stemming from insurance written by a former commercial partner, most of which is represented by policies issued to collapsed financier Greensill Capital.
The insurer said the $7 billion face value of claimed amounts – plus interest – was not “a meaningful indication of any potential exposure”. That is because of factors such as the claimed amounts being potentially recovered by other means.IAG also has arrangements with reinsurers, which cover losses for the insurer, and explain the company’s declaration that it has no “net” payout exposure to policies sold through its former agency.
Still, IAG warned reinsurers could challenge such agreements, and that there may be “timing differences” between any court findings against it and the enforcement of its rights under reinsurance agreements. The company
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