Marsh to pay more than US$713 million to settle Greensill litigation

Marsh & McLennan has disclosed settlements costing more than US$713 million over its work for Greensill Capital, the collapsed supply chain finance provider it had served as credit insurance broker since 2014.

The broker has agreed to pay the largest portion of an approximately US$800 million settlement with Credit Suisse over Greensill’s collapse. The parties alleged that Marsh had made omissions and misrepresentations about Greensill’s insurance cover.

Marsh’s chief financial officer, Mark McGivney, said on an earnings call: 'We have settled our involvement in this litigation and do not expect any additional charges relating to the case.'

The disclosed amount significantly exceeds the US$425 million liability Marsh recorded in April for the Greensill proceedings. The US$713 million figure also excludes the broker’s legal fees from the dispute.

Greensill was a London-headquartered company founded by the Australian financier Lex Greensill. It provided invoice financing to corporates and government entities, then packaged those exposures into securities sold to investors.

Its insurance arrangements became central to the collapse. Greensill failed in 2021 after BCC, its primary insurer, refused to renew policies covering the company’s extensive supply chain finance programmes.

Credit Suisse funds had been heavily invested in Greensill’s lending portfolios. In 2023, Credit Suisse joined Marsh as a respondent to Australian claims, arguing that the broker had made misleading statements and omissions about the insurance for the securities. UBS took over Credit Suisse in 2023.

Marsh, Insurance Australia Group and Tokio Marine, which owned BCC, announced settlements with Greensill Bank and Credit Suisse in the months before a trial initially scheduled to begin last month. The cases were brought by Greensill Bank’s administrators and by the Greensill investors White Oak and Credit Suisse.

Tokio Marine bought BCC in 2019.

Marsh separately agreed a settlement with White Oak in May. White Oak did not reach a settlement with Insurance Australia, BCC and Tokio Marine, and the US financier’s claims against those parties went to trial last week.

White Oak is seeking around A$170 million (US$117.6 million).