State Farm Returns $1 Billion in Dividends to Auto Insurance Policyholders

State Farm, the largest personal lines insurance company in the United States, has announced a return of $1 billion in premiums to its policyholders in 49 states, the District of Columbia, and three Canadian provinces. This move comes as the company's board of directors approved a policyholder dividends program, which will see policyholders receive a one-time return of premium based on recent financial results. This development builds on the company's history of returning dividends to policyholders, with a total of $3.3 billion paid out since 1991.

Key Takeaways:

• State Farm will return $1 billion in premiums to its policyholders across 49 states, the District of Columbia, and three Canadian provinces as part of its latest policyholder dividends program.
• The program was approved by the State Farm Mutual board of directors and will see policyholders receive a one-time return of premium by check or credit to their accounts over the next renewal cycle.
• This development is the latest in a long history of State Farm returning dividends to its policyholders, with a total of $3.3 billion paid out since 1991.
• State Farm's dividends are a one-time return of premium based on recent financial results, and the company does not plan for dividends when setting prices.
• The company has reduced rates by 5.2 percent in Arkansas since 1997.
• Arkansas customers will receive a return of $6.7 million in premiums, which eclipses the previous high of $892 million returned in 35 states and the District of Columbia in 1998.

Statistics:

• $1 billion: The total amount of premiums being returned to State Farm policyholders across 49 states, the District of Columbia, and three Canadian provinces.
• $6.7 million: The amount of premiums being returned to Arkansas customers.
• 49 States: The number of states where policyholders will receive a return of premiums.
• 3 Canadian provinces: The number of provinces in Canada where policyholders will receive a return of premiums.
• $3.3 billion: The total amount of dividends paid to auto insurance policyholders since 1991.
• 1997: The year in which State Farm began reducing rates by 5.2 percent in Arkansas.
• 1998: The year in which State Farm returned $892 million in premiums to policyholders in 35 states and the District of Columbia.

Sources:

• PR Newswire, "State Farm Returns $1 Billion in Dividends to Auto Insurance Policyholders"
• State Farm Mutual Automobile Insurance Company (Company Announcements)