The Insurance Australia Group Ltd (ASX: IAG) share price was put on hold on Friday afternoon following a company-requested pause in trading.
The company released an announcement just after lunchtime Australian Eastern Time outlining some of the details of the decision.
It followed a High Court ruling against the company and its insurance peers today regarding business interruption claims made during COVID-19.
Before its shares were put on ice, IAG was trading at $4.81 apiece, up more than 2.5% on the day.
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What did IAG announce?
The company announced the decision shortly after the High Court's ruling today. It said the halt was requested to "consider the impact" of the ruling.
A number of test cases regarding business interruption insurance during COVID-19 – and all its subsequent drama – were put to the High Court today.
The Court refused the applications made by a group of Australian insurers, who were seeking to have the cases dismissed.
Instead, it put an end to further test cases on whether the insurance industry was liable for interruption claims caused by COVID-19.
The trading halt is requested to enable IAG to consider the impact of today's determination by the High Court of Australia to dismiss the applications by IAG and the policyholders for special leave to appeal the judgment of the Full Federal Court of Australia in the second business interruption test case handed down on 21 February 2022, including to assess the financial impact.
Shares will remain halted until the company makes an announcement regarding the financial impact of the High Court's determination.
This should be done on or before Tuesday, 18 October, IAG says. Shares are up 12% this year to date.
