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.