How To Sell IAG Shares In Australia

When it comes time to sell your IAG shares on the Australian Securities Exchange, it can be a tricky task to overcome. This can be especially true if you did not purchase the shares directly or if you don't hold any other shares on the market.

While you may think you need an established trading account or an already formed stockbroker relationship for selling shares, it simply isn't the case. For one-off trades, like your NRMA (IAG) shares, you can utilise online investor trade services like Share Sell Direct to get the task done quickly and easily.

Although the whole process will be taken care of by Share Sell Direct, it is also important to understand how to make an informed decision about your trades. Let's take a look at how you got your IAG shares, your profits and the process Share Sell Direct will undergo to sell your shares.

How Most People Got Their IAG Shares

Starting off with how you obtained your IAG shares can help determine how they can be sold. Most shareholders of IAG got their shares directly through the demutualisation of the NRMA Insurance business in July 2000. This resulted in a mass return of shares to NRMA members.

After NRMA changed their name to Insurance Australia Group (IAG) Limited in 2002, the ASX ticker code IAG was updated and still carries today.

If you own a portion of IAG shares, then you are entitled to a share in the profits of the company or dividends. However, if your shareholding is not that material and you have a smaller number of shares, selling these issuer-sponsored shares may be in your best interest.

What You Paid for Your IAG Shares

If you did obtain your shares through the NRMA demutualisation, you can download the ATO Tax Information Sheet from 2001 to understand your pay and the subsequent tax effect. In a nutshell, IAG's shareholding from the demutualisation of the NRMA insurance business was to be acquired on 19 June 2000 at $ 1.78 per share.

Just after the demutualisation process, NRMA members were offered an additional 181 IAG shares to purchase. If you invested in this opportunity, you are then taken to have acquired them on the 8th of August 2000 at $2.75 per share instead.

However, if you bought your IAG shares any time after this process on the Australian Securities Exchange (ASX) or through an off-market transfer, you will have to refer to your contract note for the cost base.

How Do I Receive the IAG Sale Proceeds?

At Sell Shares Direct, we can sell shares from Insurance Australia Group (IAG) online efficiently and with the best available market price.

When filling out the online form, you will have to include financial details as well as your shareholder reference number (SRN). You can find this number on your dividend statement. If you cannot locate your shareholder reference number , you can get in touch with IAG and be referred to a share registry provider. This provider can supply you with a copy of your statement that shows your SRN.

Of course, you must also provide information for proof of identity- your own name and your registered Australian address must be listed in the holding. Further details and documentation may be needed in special circumstances.

At Share Sell Direct, we will take you through each step and procedure to make it as simple as possible for you. Keep in mind that you cannot sell shares if their holding has an account designation, is held in a deceased estate or a company holding.

After filling out your online form, the sale process will take place. We will organise and put forth a trade to sell your NRMA/IAG shares. After two business days, the ownership of the shares sold will be legally transferred to the new shareholder. Proceeds of the sale will then be sent to your nominated bank account.

After selling your IAG shares, a contract note will be sent to you from Sell Shares Direct, detailing:

• How many IAG shares were sold;
• The price the shares were sold at;
• Brokerage fee; and
• The net $ proceeds payable to you.

Finally, you may be taxed with capital gains tax from this sale if a substantial amount of IAG shares were sold.