Insurance Australia Group (ASX:IAG) said it expects to report a net corporate expense of AU$200 million in the first half of the fiscal ended Dec. 31, 2024, reflecting the release of part of its business interruption provision, according to a Friday filing with the Australian bourse.
The company said the expense stems from the declassification of a class action by the Federal Court, related to COVID-19 business interruption claims.
Following the expiration of the appeal period for the Federal Court's ruling, IAG has reviewed its business interruption provision and expects to release AU$200 million of the AU$380 million provision, the filing added.
The remaining provision will account for potential future valid claims, IAG said.
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