IAG Announces 19 Cents Per Share Dividend, Payable September 18

Dividend Announcement Overview

Insurance Australia Group Limited (IAG), a leading player in the Australian insurance sector, has declared an ordinary dividend of AUD 0.19 per share for the half-year period ending 30 June 2025. This announcement, made on 13 August 2025, confirms the company’s commitment to returning value to shareholders amid a competitive and evolving market landscape.

The dividend is partially franked at 40%, meaning that shareholders will receive a tax credit for a portion of the dividend, reflecting IAG’s tax payments. The franked amount per share is AUD 0.076, while the remaining 60% is unfranked but includes a conduit foreign income component, which can have tax implications for investors depending on their residency and tax status.

Key Dates and Payment Details

The ex-dividend date is set for 21 August 2025, with the record date following on 22 August 2025. Shareholders on the register as of the record date will be eligible to receive the dividend, which is scheduled for payment on 18 September 2025. These dates are critical for investors looking to capture the dividend or participate in the company’s Dividend Reinvestment Plan (DRP).

IAG’s DRP allows shareholders to reinvest their dividends into additional shares rather than receiving cash. Notably, the DRP for this dividend carries no discount, and no new shares will be issued; instead, shares will be acquired on-market based on the volume-weighted average price during the pricing period from 27 August to 9 September 2025. The deadline for DRP election is 25 August 2025 at 5 – 00 pm, and participation is subject to the DRP rules outlined by the company.

Context and Market Implications

This dividend declaration aligns with IAG’s ongoing strategy to balance shareholder returns with prudent capital management. The partial franking indicates a tax-efficient distribution approach, which may appeal to a broad range of investors, including those seeking income with some tax advantages. The absence of a DRP discount suggests a neutral stance on share price support through dividend reinvestment, relying instead on market conditions.

For income-focused investors, the AUD 0.19 dividend represents a tangible return amid a sector that often faces volatility due to claims experience and regulatory changes. The timing and structure of the dividend also provide insight into IAG’s confidence in its financial position following the first half of 2025.