State Farm today released financial results for 2025, including strong underwriting results and growth in the value of its investments leading to an expanded net worth, which enhances the ability to meet the needs of customers.
Positive performance in the auto business led State Farm Mutual Automobile Insurance Company (State Farm Mutual) to declare a one-time $5 billion cash back dividend for qualifying auto customers. This dividend will be paid in 2026 and is on top of the savings from recent auto rate reductions by State Farm Mutual in 40 states amounting to about $4.6 billion annually in lower total annual premiums for our customers. In addition to the $5 billion in payments to auto customers, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported nearly $1 billion in total dividends to qualified life policyholders – the highest in those companies’ history.
Staying true to its mission of helping people recover, State Farm Mutual and its property and casualty affiliates reported incurred claims of $78 billion, including payments of nearly $15 billion in 2025 to customers experiencing catastrophe claims in addition to our community-level philanthropic contributions. More than 1,000 State Farm employees, agents and agent team members deployed to California to help more than 13,500 customers with claims following devastating wildfires in January 2025. To date, State Farm Mutual and State Farm General Insurance Company together have issued over $5 billion in payments to families whose cars, homes and property were damaged or destroyed by those fires. Because many claims, repairs and rebuilds are still underway, it is anticipated that total payments could reach $7 billion. Hundreds of State Farm team members remain on the ground in the Los Angeles area assisting customers.
A Look at 2025 Financial Results
The State Farm group of companies continues to grow, providing insurance and financial services products across nearly 97 million policies and accounts. In addition, the State Farm group makes third party products available to meet a variety of customer needs including, but not limited to, variable annuities, banking, mutual funds and pet medical.
The financial strength of State Farm Mutual and each of its affiliates is key to fulfilling promises to customers in the future and expanding and enhancing service to customers.
In 2025, the State Farm group of companies reported an underwriting gain, representing an improvement over prior year and consistent with industry-wide trends. As a mutual company without shareholders, State Farm Mutual is uniquely positioned to provide value directly to customers such as policyholder dividends.
The State Farm property and casualty affiliates reported earned premium of $111.6 billion and a combined underwriting gain of $1.5 billion. This result compares to an underwriting loss of $6.1 billion on earned premium of $103.0 billion in 2024….
Read More: State Farm® Reports 2025 Financial Results
