Freedom Insurance Group reports 6% drop in annual profit

Australian life insurer Freedom Insurance has reported a 6% drop in its annual net profit, hurt by weak sales in the first half of the fiscal year.

The company’s net profit for the fiscal year to June 30 fell to $13.2 million from the previous year’s $14.1 million, while its annual net revenue rose about 20% to $64.1 million.

The group’s shares also hit an all-time low after it was named as one of the insurers to appear at the sixth round of commission hearings, Reuters reported.

The hearings, which will kick off on September 10, will also see AMP, CommInsure, Clearview, IAG, Suncorp, and four others grilled about the sale of life and general insurance products and the handling of claims.

The year-long inquiry has exposed serious failings in the financial sector and is set to submit an initial report to the government by the end of September.