Life insurer Freedom Insurance Group Ltd’s (ASX: FIG) share price has tumbled 26% over the past two days, to close at 11 cents on Thursday.
This comes as the company has confirmed it will stop cold-call sales for a range of insurance products and discontinue its use of a call centre.
In a statement issued to the ASX issued on Thursday, Freedom said its board had agreed to cease outbound sales of its term life and trauma insurance, along with a previously announced suspension of marketing its loan protection cover, later in September.
The insurance products accounted for 13% of Freedom’s sales in 2017/18, the company said.
“The impact of these changes on sales and earnings in the current financial year is uncertain,” it said.
At his appearance before the banking Royal Commission on Wednesday, Freedom’s chief operating officer Craig Orton advised the company had ceased outbound sales of accidental death and accidental injury insurance in August.
The embattled insurer says it will also be terminating its contract with external call centre Peakbound Holdings.
Freedom says it has appointed auditing firm Deloitte to assist with a review of its business strategy, structure and sales practises.
Last month, Freedom announced its FY18 results, reporting earnings that were slightly above guidance. Revenue was $64.1 million, up 20% from $53.5 million in the previous year, while full-year net profit of $13.2 million, down 6% from $14.0 million in the prior corresponding period.
Freedom Insurance shares have fallen almost 85% in the last 12 months, compared to a gain of 6.8% for the S&P/ASX 200 Index.