Insurance Australia Group <IAG.AX> maintained its 2020 guidance on Monday but flagged "limited" scope to pay a final dividend in September amid uncertainty over the impact of the novel coronavirus.
The pandemic has added to challenges facing Australian insurers, which have yet to recover from a turbulent summer as raging wildfires, drought and hailstorms led to a surge in claims that weighed on their margins.
Last month, Australia's prudential regulator had asked banks and insurers to consider deferring dividend payouts or use buffers like dividend reinvestment plans until the impact of the pandemic is better known.
The insurer said it is retaining its 2020 guidance of "low single digit" gross written premium growth and a reported insurance margin of 12.5% to 14.5%.
IAG added, however, that based on year-to-date investment income outcomes and forecast full-year insurance profit, it saw limited scope to pay a final dividend in September.
The insurer had posted a drop of more than 43% in first-half profit and cut its full-year insurance margin outlook in February.
IAG's statement did not specify how many virus-related claims it had received so far.
(Reporting by Shruti Sonal in Bengaluru; Editing by Peter Cooney and Kim Coghill)
