Loy Yang stakeholder granted indemnity in insurance claim

Horizon Investment Management, which has a 25 per cent stake in Loy Yang Power, has been granted indemnity from Loy Yang's insurers on a claim relating to the recent failure of the Unit Four generator.

The final figure of the payout to Loy Yang Power - Australia's largest privately owned electricity company - has yet to be finalised with talks continuing with insurers on the details.

Horizon said the insurance maintained by the Latrobe Valley-based Loy Yang provided coverage for property damages and business interruption.

The insurance claim follows the collapse of one of Loy Yang's four 500-megawatt units in December. Repair work is expected to take several months.