(Adding background information to Greensill, share price)
March 9 (Reuters) – Insurance Australia Group, the country’s largest general insurer, said on Tuesday it had no net disclosure of supply chain finance company Greensill Capital, helping its shares recover from a sharp 10% decline in earlier.
IAG said in a statement that since their 50% stake in BCC was sold to Tokio Marine in 2019, it had no longer acquired trade credit insurance, including policies that BCC sold to Greensill.
The news comes a day after Greensill filed for bankruptcy after losing insurance cover for its debt repackaging business and said its largest client, GFG Alliance, had begun to fail. his debts.
“As part of the fair IAG entered into agreements with Tokio Marine to make it open to trade credit insurance written by BCC through IAL,” IAG said.
Insurer shares last down 1%. They were halted ahead of the announcement after slipping 10.2% to their lowest level since November 2012 earlier in the session.
Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Subhranshu Sahu, Aditya Soni