Insurers Not Liable For ANZ Class Action Settlements Or Defence Costs

The Federal Court of Australia, in Australia and New Zealand Banking Group Limited v Zurich Australian Insurance Limited [2026] FCA 1490, has held that ANZ was not entitled to indemnity under its excess liability policies for $116.92 million paid to settle two consumer class actions, or for the associated defence costs. The decision gives substantive content to the indemnity principle and confirms that liabilities to return premiums, commissions, interest or other charges received by an insured may fall outside the definition of Loss, irrespective of whether the underlying claim is framed in restitution or damages.

Background

ANZ was insured under a $250 million insurance tower. The primary insurance policy provided $50 million of cover. Three excess layer policies supplied a further $200 million across successive layers. The respondents, including Zurich Australian Insurance Limited, were the participating excess insurers.