Shares in Australian insurer hit all-time low ahead of inquiry
By Paulina Duran
SYDNEY, Aug 28 (Reuters) - Shares in Australia life insurer
Freedom Insurance fell to an all-time low on Tuesday
after the company was listed among ten firms to appear next
month before an inquiry into misconduct in the financial
The Royal Commission said on Monday that Freedom,
Commonwealth Bank of Australia, AMP Ltd, IAG
, Suncorp and five other firms would be the
focus of public hearings on the insurance sector from Sept. 10.
The year-long inquiry has uncovered misconduct in the
lending, wealth management and pension fund sectors, forcing
senior management shake-ups and a CEO resignation. It will
submit an initial report to the government by the end of
Freedom shares fell 17.95 percent to 32 cents on Tuesday
morning, the lowest level since listing at 35 cents in 2016.
Shares in CBA and Suncorp were about 1 percent higher while
AMP, IAG and the broader market were largely unchanged.
"Freedom will co-operate fully with the Royal Commission and
is committed to addressing any issues that may emerge through
this process," the company said in a statement to the bourse.
Freedom will release its 2018 financial year results on
Wednesday, it said.
"Freedom does not intend to make any further statement
regarding the Royal Commission prior to the hearing," the
The Australian newspaper reported on Tuesday that the
corporate regulator would release a report into the direct sales
practices of life insurance companies and it would "feature"
A spokesman for the Australian Securities and Investments
Commission (ASIC) told Reuters it would release such a report
this week, but he declined to comment on any companies included
in the review.
(Reporting by Paulina Duran
Editing by Darren Schuettler)
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