State Farm Mutual Automobile Insurance Company—the firm whose famous tag line touts being a “good neighbor”—is paying $5 billion cash back to auto customers through the largest dividend in the company’s history.
State Farm announced the move on Feb. 26, along with reductions in auto insurance rates in many states, saving customers nearly $4.6 billion a year.
“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,” State Farm Mutual President and CEO Jon Farney said in the announcement.
“That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.”
State Farm released its 2025 financial results on the same day, reporting total revenue at $132.2 billion, compared with $123 billion for 2024. This included premium revenue, earned investment incomes, and realized capital gains.
The company also reported net income of $12.5 billion in 2025, up from $5.3 billion in 2024.
Its property and casualty affiliates reported an earned premium of $111.6 billion and a combined underwriting gain of $1.5 billion. This compares to an underwriting loss of $6.1 billion on an earned premium of $103 billion in 2024.
The company’s life insurance affiliates reported $924 million in dividends to policyholders and issued a record $130 billion in new policy volume.
Beginning this summer, the Bloomington, Illinois-based national insurer will make one-time distributions to qualifying consumers, involving more than 49 million vehicles.
Farney credited the company’s financial strength and a stronger-than-expected underwriting performance for allowing such a substantial dividend. The payments will average $100 per vehicle and will vary by state and premiums paid.
The company also noted that downward-trending auto repair costs and fewer collisions in 2025 enabled it to lower auto rates in 40 states by an average of 10 percent.
“We will continue to monitor these trends and continue to take appropriate action,” the statement indicated.
State Farm also recently launched its Distracted Driving Awareness Program to further reduce accidents. Through apps like “Drive Safe & Save” and “Steer Clear,” drivers can access research, education, and community programs to keep them safe on the road.
In the fall of 2025, a State Farm survey found that more than 65 percent of drivers aged 22 to 40 believe it’s safe to look away from the road for two or more seconds, despite research that indicates even a two-second glance away can double the risk of a crash. Some of the most reported distractions include using a GPS, searching for music, texting, and manually dialing a phone number.
The insurer’s research shows that reading or sending a text typically takes less than five seconds, but increases the risk of an accident by 23 times. Traveling at 55 miles per hour, that same five seconds equates to traveling the length of a football field with eyes off the road.
Founded in 1922, State Farm and its affiliates are the country’s largest providers of auto and home insurance combined. With more than 19,000 offices and 65,000 employees, the insurer also offers fire, life, health, and commercial policies as well as financial services.
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