State Farm will pay a record US$5 billion dividend to its car insurance customers after reporting solid income and underwriting gains in 2025.
It has also lowered car insurance rates in most of the United States by an average of 10% in recent months, the company said, amid falling car repair costs and a lower rate of accidents. Car insurance premiums had surged by 55% from 2022 to 2025, per the Bureau of Labor Statistics.
“As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future,” said State Farm president and CEO Jon Farney.
“That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.”
State Farm customers will receive around $100 per vehicle on average, though this will depend on their state and the premiums paid.
The payout comes as State Farm reports its earnings. Total revenue was $132.3 billion last year, up from $123.0 billion in 2024.
Net income was $12.9 billion, more than double its $5.3 billion income in 2024. Its property and casualty affiliates reported an underwriting gain of $1.5 billion and earned premium of $111.6 billion.
The company’s auto insurance business posted an underwriting gain of $4.6 billion and earned premium of $71.3 billion.
State Farm’s net worth was $170 billion at the end of 2025, the company said, increasing from $145.2 billion the prior year. It credited this to the property and casualty businesses’ growing operating profit and an increase in their unaffiliated stock portfolios.
