State Farm Declares Record $5B Dividend for Auto Insurance Customers
On February 27, 2026, State Farm Mutual Automobile Insurance Company declared a $5 billion cash back dividend to its auto insurance customers. This significant payout, set to be distributed this summer, marks the largest in the company’s 103-year history.
The one-time dividend will be shared among policyholders of more than 49 million State Farm Mutual auto vehicles. Payments are expected to average around $100 per vehicle, although the exact amount will depend on the state and premiums paid.
“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 Jon Farney, State Farm Mutual President and CEO.
The dividend has been made possible by the company’s robust financial performance and better-than-expected underwriting results across the industry. A decrease in auto repair costs and a decline in collision frequency in 2025 also enabled State Farm to reduce auto rates in 40 states by an average of 10%. This represents $4.6 billion in annual premium savings.
In 2025, State Farm reported a total revenue of $132.3 billion, a significant increase from $123 billion in 2024. The net income also saw a substantial rise, reaching $12.9 billion.
Source: State Farm Newsroom