AMP has withdrawn the earnings guidance it issued just last month, but says the sale of its life insurance business is still on track to be completed by the end of June.

In February AMP forecast underlying profit would be broadly flat in the current fiscal year, adjusting for the sale of AMP Life.

Many insurers and other businesses are withdrawing earnings guidance made during February’s financial reporting season as efforts to slow the spread of the deadly virus that causes COVID-19 bring the global economy to a crawl. Analysts say the pandemic may wipe $US1.3 trillion ($2.2 trillion) from world gross domestic product.

“While the current environment remains uncertain and challenging, AMP confirms the sale of AMP Life remains on track for completion by June 30,” the company says in an ASX statement.

“Due to the uncertain environment and resultant challenges in providing accurate forecasts for this year, AMP is withdrawing the FY20 guidance outlined in February 2020,” it said.

AMP says its client remediation program remains on course to be 80% complete by June 30 and fully complete in 2021.

“Our group balance sheet and liquidity remain strong and we are confident in our ability to support clients in this time of need,” AMP CEO Francesco De Ferrari said.

AMP shares, which traded above $2 last month, closed Thursday at $1.22.