Ann: IAG Acknowledges Proceedings Commenced by ASIC, page-7

I have been asked to wade in with my opinion even though I am not a holder as yet...also everybody's knows im a trader...

ASIC is alleging...thats it as I see it, albeit probable self reporting through industry mandate... IAG engaged in misleading or deceptive conduct and made false representations to some NRMA Insurance customers, saying they were eligible to certain discounts but then didn’t apply them.

ASIC claims IAG increased the gross insurance premiums that would apply to those customers to ensure their net premiums after discounts did not fall below a certain level, reducing the extent of discount offered....

ASIC said this affected 596,000 customers with 705 separate insurance policies, equivalent to 1.785m times in total....I am very happy to be corrected with any of this as my reading all day everyday misses points in the pages upon pages that I read...or mu iMac yapps about...hehehe....

The discounts not passed on amounted to $60m implying $33.60 per instance.

Regulatory action by ASIC will almost certainly raise the question again on quality issues relating to IAG such as the collapse of Greensill, business interruption, reserving, poor acquisition records in Wesfarmers, and now customer refunds.

Nevertheless, it appears to me that this latest issue had already been well provisioned for by IAG with a $238m charge in FY21 plus $246m in FY20 as a poster in here who watches this stock like a hawk and he seems to be correct I think that against ASIC’s $60m charge of misapplied discounts, and the other issues had also been dealt with in ways that I think are likely to prove conservative or for example business interruption.

I think the regulator could be using IAG’s case to make sure other industry participants also adequately review their situation.....

ASIC noted that, among insurers, IAG had self-reported rectification of $377m for these issues, while Suncorp flagged $8m in customer rectification, QBE Insurance $15m, Allianz $600,000, Commonwealth Bank $590,000, RACQ $3.4m and Hollard Group $105,000.

I don’t expect a material incremental P&L impact from this action so its still a trade so for me it may well explains the recent share price weakness and exacerbate those near-term concerns for long term holders how ever for me as far as a trade is concerned I will still sick to the buy between 4.75 & 4.90 and again a sell and the 5.13. I have been doing this for months now as I believe it is in a sideways pattern for months to come...

I hope this helps all enquiries...

All the best to long term holders