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State Farm Mutual Automobile Insurance Company Issues Largest Cash Dividend in History to Millions of Auto Policyholders

State Farm Mutual Automobile Insurance Company has begun distributing a one-time $5 billion cash-back dividend, marking the largest payout in the company's 100-year history. The dividend will be distributed to policyholders of more than 49 million vehicles who held qualifying private passenger auto policies between January 1 and December 31, 2025. Jon Farney, State Farm Mutual President and CEO, stated that the payout is a result of stronger-than-expected underwriting performance and a customer-first focus. Eligible customers will receive an average of $100 per vehicle, though the specific amount varies by state between 4% and 10% of the premium paid. The distribution process is expected to take several months as payments are issued in waves. Customers with a registered email address will receive instructions to access a payment portal to choose between digital payments or a check, while those without an email on file will automatically receive a check by mail. The dividend is retrospective and does not affect future auto insurance rates.

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