State Farm Plans $118.7 Million in Dividends for Illinois Auto Insurance Policyholders
10 September 1997
State Farm Plans $118.7 Million in Dividends for Illinois Auto Insurance PolicyholdersBLOOMINGTON, Ill., Sept. 10 -- State Farm Mutual Automobile Insurance Company, the largest personal lines insurance company in the United States, announced today it plans to pay dividends of $118.7 million to its Illinois auto insurance policyholders. The Illinois dividends are part of a national program under which State Farm Mutual and its New Jersey affiliate, State Farm Indemnity Company, will pay nearly $700 million to its auto insurance customers in 30 states and the District of Columbia. The dividends will be paid by check or a credit to State Farm Mutual customers' accounts over a six-month period beginning Nov. 1. State Farm will return 16.1 percent of its semiannual premium on its 2,231,500 Illinois policies. The $692.3 million in dividends brings to about $1.5 billion the total amount of dividends State Farm has paid to auto insurance policyholders since 1991. Dividends are a one-time return of premium based on recent claims experience. When State Farm's frequency and costs of claims are less than anticipated and business conditions permit, dividends allow State Farm to quickly return money to customers. Changes in claims experience that are believed to indicate long-term trends typically are reflected in rate adjustments. State Farm Mutual reduced its auto insurance rates in Illinois an average of 5.6 percent effective June 1, 1997. SOURCE State Farm Mutual Automobile Insurance Company