Disgraced former HIH director and head of FAI Insurance Rodney Adler could face further legal action in relation to the collapse of HIH Insurance in 2001.

The former HIH director and head of FAI Insurance is one of nine defendants in HIH liquidator Tony McGrath's civil case to recover the $295 million HIH paid for FAI two years before its collapse, plus interest.

According to media reports, fellow defendants General Re and Guy Carpenter are considering filing cross-claims against Mr Adler and fellow FAI directors Daniel Wilkie and Timothy Mainprize in relation to FAI's 1998 audit, which wrongly showed an $8 million profit rather than a $50 million loss.

Fresh out of jail last month, Mr Adler agreed to settle a case brought by failed telco One.Tel's liquidator for a reported amount of between $1 million and $2 million.