Insurance Australia Group (ASX:IAG) Goes Ex-Dividend with 20-Cent Final Payout

Aditi Sarkar

24 August 2026 07:02 PM AEST

Insurance Australia Group (ASX:IAG) Goes Ex-Dividend with 20-Cent Final Payout

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Highlights

IAG trades ex-dividend on 24 August 2026 for a 20-cent final dividend.
The payment is 80% franked and is due on 28 September 2026.
The indicated Dividend yield is 2.64% at a share price of AUD 7.57.
The final dividend lifts IAG’s FY26 Ordinary Dividends to 32 cents per share.

Insurance Australia Group Ltd (ASX:IAG) reaches its final-dividend ex-date on 24 August 2026, putting its latest Capital return in focus after the insurer completed FY26. The company has declared a 20-cent final dividend, 80% franked, with payment scheduled for 28 September. At AUD 7.57, the final distribution carries an indicated yield of 2.64%. The payout follows an Interim Dividend of 12 cents and takes total FY26 ordinary dividends to 32 cents per share.

20-Cent Final Dividend Lifts FY26 Distribution

IAG’s final dividend is 20 cents per share, of which 16 cents is franked. The final payout compares with the 12-cent interim dividend paid earlier in the year.

Together, the two distributions bring FY26 dividends to 32 cents per share. IAG has indicated that this represents a Payout Ratio of approximately 74% of reported net profit after tax.

The Record Date is 25 August, while payment is scheduled for 28 September 2026.

Franking Adds to the Cash Distribution

The final dividend is 80% franked, increasing the gross value of the payment for eligible shareholders able to use franking credits.

IAG’s Dividend reinvestment Plan has been suspended for the FY26 final dividend, meaning the distribution will be paid in cash rather than through the DRP.

FY26 Result Supports the Capital Return

IAG’s FY26 financial performance gave the Board room to increase the final distribution from the prior year. The insurer’s Annual Report also highlighted the relationship between earnings, capital strength and Shareholder returns.

For dividend-focused shareholders, the key measure is not only the headline 20-cent payment but whether future insurance margins, claims outcomes and capital generation can support a comparable payout level.

What Could Drive IAG Shares Next?

Future dividend capacity will remain linked to Underwriting profitability, claims inflation, premium pricing and capital requirements.

The next interim result will provide a clearer indication of whether IAG can maintain its current payout profile while managing weather-related claims and competitive conditions.

Insurance Australia Group Outlook

IAG enters FY27 after lifting its full-year ordinary dividend to 32 cents per share. The 20-cent final distribution, 80% franked, reflects the insurer’s FY26 Earnings and capital position, while future payouts will remain tied to underwriting performance and claims trends.

FAQs

Q: What is IAG’s final dividend for FY26?

A: IAG has declared a 20-cent final dividend.

Q: When does IAG trade ex-dividend?

A: The ex-dividend date is 24 August 2026.

Q: How much is the dividend franked?

A: The final dividend is 80% franked.

Q: When will IAG pay the dividend?

A: Payment is scheduled for 28 September 2026.

Q: What is IAG’s indicated dividend yield?

A: The indicated yield is 2.64% at a share price of AUD 7.57.

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