IAG

Insurance Australia Group warns of 70% plunge in 2020 cash earnings

Credit: REUTERS/DAVID GRAY

Insurance Australia Group Ltd on Friday slashed its earnings expectations for 2020, citing disruption caused by the coronavirus pandemic, bad weather and market volatility.

July 24 (Reuters) - Insurance Australia Group Ltd IAG.AX on Friday slashed its earnings expectations for 2020, citing disruption caused by the coronavirus pandemic, bad weather and market volatility.

The company expects full-year cash earnings of A$279 million ($198.17 million), a 70% plunge from the A$931 million it earned in 2019.

IAG further cut its expected insurance margin - a key profitability metric - to around 10% for the year, against an already lowered outlook range of between 12.5% and 14.5% it had announced in February.

($1 = 1.4079 Australian dollars)

(Reporting by Rashmi Ashok in Bengaluru; Editing by Anil D'Silva)

((Rashmi.Ashok@thomsonreuters.com; +918061822604;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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