From Sydney Morning Herald:"Two sources close to the situation...

From Sydney Morning Herald:
"Two sources close to the situation but without authority to comment on the record confirmed the Australian Prudential and Regulatory Authority (APRA) had concerns about IAG Insurance Australia Limited’s relationship with Greensill, over what threatened to amount to an exposure of over $US4 billion, since November."

But the real reason the market is reacting negatively:
"Justice James Stevenson noted this week that IAG did not have reinsurance for the policies at an emergency hearing this week and IAG’s Insurance Australia Limited could "be exposed to claims, potentially in very large amounts, for which it has no reinsurance cover" if forced to renew the policies covering assets valued at $US4.6 billion."

So if IAG does not have reinsurance and the exposure is potentially $4b, then that means IAG is potentially on the hook for $4b or 40% of IAG total share market capitalization.

Does anyone have access to the full judgement?