IAG Declares AUD 0.12 Dividend With Full DRP Option for H1 2026

IAG Announces Interim Dividend

Insurance Australia Group Limited (IAG), one of the country's leading insurers, has declared an ordinary dividend of AUD 0.12 per share for the six months ending 31 December 2025. This announcement, made on 12 February 2026, confirms the company’s commitment to returning value to shareholders amid a stable operating environment.

The dividend is 25% franked, reflecting a partial tax credit to investors, with a franked amount of AUD 0.03 per share. The payment date is scheduled for 13 March 2026, following the ex-dividend date on 17 February and the record date on 18 February. These dates are critical for investors to determine eligibility for the dividend payout.

Dividend Reinvestment Plan Details

IAG continues to offer its Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. Notably, the DRP for this dividend carries no discount, meaning shares will be acquired at the volume weighted average price on the ASX during the pricing period from 23 February to 4 March 2026.

The default option for shareholders who do not make an election is to receive the dividend in cash. Shareholders wishing to participate in the DRP must lodge their election by 5pm on 19 February 2026. The DRP shares will be issued on the dividend payment date, 13 March 2026, and are not newly issued shares but rather acquired on market.

Context and Market Implications

This dividend announcement aligns with IAG’s consistent track record of shareholder returns and reflects a stable financial position. The partial franking indicates the company’s effective tax management while maintaining flexibility in capital allocation. The absence of a DRP discount may influence participation rates, as investors weigh the benefits of reinvestment against market prices.

Investors will be watching closely how the market responds post the ex-dividend date, as dividend announcements often impact share price momentum. Additionally, the upcoming half-year results will provide further insight into IAG’s operational performance and potential future dividend policy adjustments.