Parties involved in the HIH Insurance case involving Federal Opposition Leader Malcolm Turnbull appear to be close to settlement.

This comes a little over a month after the judge involved in the case indicated an out-of-court settlement could be reached by the end of the year.

The civil action was brought by HIH liquidator Tony McGrath over the 1998/99 acquisition of FAI Insurance.

At that time Mr Turnbull was Chairman of investment bank Goldman Sachs, which advised FAI over the acquisition.

He and the bank were cleared by HIH Royal Commissioner Justice Neville Owen of withholding information about the true value of FAI.

Other companies involved in the litigation are General Re and broker Guy Carpenter. Mr McGrath has claimed the alleged cost of FAI to HIH – $295 million, plus interest.

NSW Supreme Court proceedings were halted on September 18 on legal advice that a settlement could be reached.

Lawyers contacted last week by insuranceNEWS.com.au indicated the settlement process is in its final stages, while Mr Turnbull’s office did not respond to an approach by insuranceNEWS.com.au.

The Age and Sydney Morning Herald said last week the case has been settled.

The next hearing on the case is scheduled for December 17 to 19.