As IAG raised $750m, a hedge fund’s tip-off claimed there was scant detail about exposure to fast financier Greensill Group. Since then, $7b in gross claims have been declared.
A fund manager query about Greensill Group exposure prompted review.The corporate regulator secretly probed whether insurance giant IAG needed to disclose the risk of a potential costly blowout to controversial financing firm Greensill Group during a $750 million capital raising, freedom of information documents reveal.
An associated presentation to investors listed risks but nothing was mentioned about Greensill Group in that update, nor in earlier annual reports. The email is redacted but a source with knowledge of the correspondence confirmed this was from Mr Hempton, who months later publisheda copy of that email specifically raising questions about IAG having not disclosed Greensill Group ties and a potential “multibillion dollar exposure”.
ASIC was days later discussing Greensill again: this time, evaluating possible insurer fallout in an executive’s email ahead of an upcoming meeting of the Council of Financial Regulators. “ASIC has increased interest in the exposure of insurers to trade credit, particularly associated with Greensills,” it said.
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