The Insurance Commission of WA (ICWA) will share in a multibillion-dollar payout after the settlement of long-running litigation over the collapse of Alan Bond’s Bell Group.

ICWA was the major funder of legal action against banks to Bell Group, and although the settlement has not been disclosed, there is speculation it will receive about $1 billion.

Commission CEO Rod Whithear has welcomed the settlement, announced last Tuesday, but says it is subject to court approvals that could take another six months.

“There is considerable further work ahead for remaining creditors before any distribution of funds can be contemplated. This may take several years.”

ICWA became one of Bell’s creditors when the group collapsed.

The case began in 1995 and concerned $265 million of loans to Bell, which liquidators claimed were improperly recovered by banks when the group collapsed in 1991.

About 20 banks were involved. In 2008 they were ordered to repay $350 million, which, with compound interest, added up to a $1.66 billion award.

The banks paid $718 million in December last year but challenged the interest rate in the High Court, before finally settling to save further time and costs.