Japanese insurer Tokio Marine has accused Greensill Capital of fraudulently obtaining insurance coverage, adding that it will not be paying out policies held by the collapsed supply chain finance company.
Through a statement released Monday, Tokio Marine said that it would “vigorously defend” against legal claims made in connection to Greensill’s 2021 collapse.
Greensill filed for insolvency last year after Tokio Marine refused to renew its insurance coverage, prompting Credit Suisse and others to suspend their funding. The company had relied on insurance to sell on its debts, the majority of which went to Credit Suisse.
Credit Suisse and other creditors have now filed lawsuits in Australia seeking compensation from Greensill’s insurance to restore assets lost through the collapse, with claims estimated to reach up to US$219 million.
Tokio Marine inherited Greensill’s insurance policies after it bought IAG’s BCC Trade Credit unit in 2019.
“While these investigations remain ongoing, Tokio Marine has found that since at least September 2018, matters material to the underwriting of the policies were fraudulently misrepresented to BCC by Greensill,” Tokio Marine said. “There was also a fraudulent failure to disclose material matters to BCC prior to the purported inception of numerous policies, renewals and endorsements.”
Tokio Marine previously conveyed its misgivings of Greensill’s insurance policies last year, saying that it was “ready to protect its interests in court as required.”
