Freedom Insurance has confirmed it is holding confidential discussions with key stakeholders about its financial position.

An external audit of its six-month accounts is continuing, with the life insurer unable to say when it will be completed.

Freedom asked the Australian Securities Exchange to suspend trading earlier this month.

Late last year the business set aside $3-$4 million for a customer compensation program following a strategic review.

It also stopped phone sales for term life and trauma products, and halted new sales.