Tokio Marine probing validity of Australian unit's Greensill policies

Greensill has filed for insolvency after losing coverage for debt repacking business.

Japan’s Tokio Marine is investigating the validity of insurance policies provided by its Australian unit to speciality finance firm Greensill, reports Reuters.

Greensill filed for insolvency on 8 March after losing insurance coverage for its debt repackaging business and said that its largest client, GFG Alliance, had started to default on its debts. GFG Alliance said the group is operationally strong.

Tokio Marine unit Bond and Credit Company (BCC) had provided $4.6b of coverage to Greensill credit notes, Australian court filings revealed.

Tokio Marine spokesperson Tetsuya Hirano said the figure in the court filings did not reflect the likely loss but declined to comment further.

Having examined BCC’s business relationship with Greensill, the insurer right now sees no need to change its financial forecasts for the year ending this month, Hirano added.

Here’s more from Reuters.

Photo courtesy of Wikimedia Commons.