Shares in Freedom insurance, which has been subject to criticism in the financial services royal commission, are falling.
A short time ago, the shares were down 20% to $0.12, a long way from the month high of $0.42. Yesterday the shares surged by as much as 23% to $0.16.
Freedom Insurance sold a life policy package including funeral expenses coverage to a 26-year-old man with Down Syndrome who didn’t understand what was happening and found it difficult to express himself, the royal commission was told.
Craig Orton, Freedom’s Chief Operating Officer, aplogised during a commission hearing yesterday.
Freedom last month reported a 14.3% increase in full year revenue to $61.34 million. Net profit after tax was $13.15 million, down 6.5%.
Last week the company announced a strategic review following a report by corporate regulator ASIC on direct life insurance.
ASIC says it intends to restrict outbound sales of life and funeral insurance in order to protect consumers.
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