CLARIFICATION OF MARKET ANNOUNCEMENT Freedom Insurance Group...

CLARIFICATION OF MARKET ANNOUNCEMENT Freedom Insurance Group Limited (ASX: FIG) (‘Freedom’ refers to its ASX announcement of 2 October 2018, and notes the following. In that announcement the company advised it would “reduce its staff to approximately 90 employees and will decrease other operating costs to align them with the reduced activities” and, “On implementation, these initiatives are expected to reduce annual operating expenses by at least $15 million.” Freedom clarifies that the $15 million operating costs reduction is in addition to savings associated with reduced employee numbers. The reduction in annual salary cost is expected to be approximately $12 million, subject to finalisation of staffing levels. As previously stated, the company will incur approximately $4.8 million of restructuring costs, inclusive of redundancy payments for affected staff.