Tokio Marine court-bound and ‘well prepared’ for battle over Greensill

Tokio Marine is “very well prepared” for a legal onslaught over its former trade credit coverage of Greensill funds and fully expects the conflict will head to court,  Tokio Marine group CEO Satoru Komiya has said.

“We were aware that it will be subject to litigation and we have been taking action accordingly,” Komiya said during a meeting on corporate strategy with market analysts.  “We were aware and we have been prepared well and we are well prepared.” No mention was made on any steps towards a non-court settlement.

Investigations into the origins of the scandal continue, but  Tokio Marine stands by the initial diagnosis it issued in April when it declared the policies null and void.

“Material information that is necessary at the time of underwriting was falsified and intentionally so,” Komiya said of the latest determinations. “So we believe the insurance is not valid.”

Komiya reiterated prior assertions that  Tokio Marine financial results will emerge unscathed. “The impact on our future performance as well as on financial expectations is zero or limited, if any.”

At issue are trade credit policies backing underlying assets in supply chain financing securitization funds run by Greensill.   Tokio Marine inherited those policies upon its purchase of unit BCC Trade from Australia’s IAG.

Greensill collapsed early in 2021 after Tokio Marine began to cancel coverage upon having uncovered concerns over the policies. Credit Suisse is eminent amongst investors in Greensill financial products and has also been reported hinting it could take legal action, including against  Tokio Marine.

“For more than a year, we have engaged the help of experts for the investigation .... and we do believe that the validity of these insurance policies is questionable,” Komiya said. “We have an excellent team.”

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