IAG has provided a business update today, maintaining it is still on track for a reported margin range of 12.5-14.5% this financial year, despite the still unfolding fallout from the coronavirus outbreak.

Last month the business had cut the margin forecast from 14.5-16.5%, which was made in January. At that time, the coronavirus outbreak was affecting mainly Europe, China and parts of east Asia. Since then, the number of confirmed cases in Australia has increased significantly, disrupting nearly every sector of the economy.

“IAG’s underlying business performance has remained strong, although overall year-to-date profitability has absorbed substantial adverse impacts from net natural peril claim costs and, more recently, severe investment market movements,” the insurer says in a statement.

“Reported margin guidance includes the assumption that there is no material movement in foreign exchange rates or investment income in the second half of the financial year.”

The Investor Day planned for May 14 in Sydney has been postponed and a new date for the event is being made.

IAG also says in the statement it has completed the sale of its 26% stake in the SBI General joint venture in India. The business will book the sale as a $310 million net profit in its second-half earnings report.

The business is “well advanced” in its response to the COVID-19 pandemic, with more than 90% of staff working from home and measures being taken to support customers.

“From a business perspective, service levels have held steady and we have seen an encouraging lift in productivity, energy and engagement across our operational teams as we work to support our customers and each other,” CEO and MD Peter Harmer said.

“We are working with our partner builders, repairers and supply chain to ensure we are supporting our customers throughout the claims process. Where possible, our claims assessing processes have been revised to allow desktop and digital assessments to minimise face-to-face interaction.”