Freedom Insurance enters trading halt

One of the insurers named during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Freedom Insurance Group, has entered a trading halt on the Australian Securities Exchange.

The company announced the trading halt pending an “announcement providing a material update on the financial position of Freedom and its subsidiaries”.

The company’s calling of a trading halt follows on from its December announcement that it expected to record a loss of between $9 million and $10 million before remediation, and an earlier announcement that it had ceased new sales changed senior management and reduced staff and operating costs.

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The company also announced that it plan to acquire St Andrews Insurance had fallen through.

Freedom was focused on outgoing phone sales of life/risk insurance, something which is unlikely to continue under the recommendations of the Royal Commission.

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