Insurance Australia Group (IAG.AX): Media reports of Greensill settlement; if confirmed, this would remove overhang for IAG

Over the weekend, the AFR reported that IAG and Credit Suisse (and White Oak) have reached a settlement relating to the Greensill claims. The article reported that hearings were due to begin in the Federal Court today but have since been canceled. We remind that IAG had previously noted that the aggregate face value of the claimed amounts in these proceedings was ~A$3bn plus interest. IAG put out an announcement this morning stating that a settlement has yet to be finalised. IAG maintains that, net of anticipated recoveries from insurance and reinsurance as well as other indemnities, any settlement in these proceedings is not expected to have a material impact on IAG's financial position or FY27 results. GS comments: While we do not take a view on the likelihood of a settlement having been or being reached, or its outcome, we would view any potential settlement outcome that has no material financial impact as a positive for IAG by removing a key overhang for the stock.