One of Australia's biggest insurance firms Insurance Australia Group (IAG) yesterday warned its shareholders to steer clear of any unsolicited bids from a firm called Hassle Free Share Sales.

IAG warned shareholders that the company could be behind an unsolicited attempt to buy IAG shares at a discount to their true value.

The firm said a copy of its ordinary share register had been requested by a company called Share Buyback, which had recently been barred by ASIC from making offers to shareholders.

IAG said it now believed that people associated with Share Buyback might now make offers to IAG shareholders under a new company name, Hassle Free Share Sales.

"If IAG shareholders receive an offer to sell their shares, they should carefully consider their options when deciding whether or not to accept it," IAG head of investor relations Mike Woods said.

IAG shares fell 0.5 per cent yesterday to $5.68 by afternoon trading.

This is the second time within a year that IAG has been forced to issue a warning to its shareholders to reject unsolicited offers.

In September, IAG told shareholders that well known company predator David Tweed was preparing a potential share offer through his company Direct Share Purchasing Corporation.

It was the sixth unsolicited offer for IAG shares made by companies associated with Tweed since 2002.

Tweed has in the past been accused of preying on elderly people who do not understand the share market.

In June, Hassle Free Share Sales made a predatory offer to buy shares in Bendigo Bank for $10 each. Bendigo Bank urged its shareholders to ignore the offer.

Its shares are now worth $16.