State Farm to Return $46.1 Million to Ohio Auto Insurance Policyholders
12 June 2000
State Farm to Return $46.1 Million to Ohio Auto Insurance PolicyholdersBLOOMINGTON, Ill. - State Farm Mutual Automobile Insurance Company, the largest personal lines insurance company in the United States, announced today it will return $46.1 million in premium paid by its Ohio auto insurance policyholders. State Farm Mutual policyholders in 49 states, the District of Columbia and three Canadian provinces will receive a total of just over $1 billion in the company's latest policyholder dividends program, which was approved today by the State Farm Mutual board of directors. Policyholders will receive their dividend by check or a credit to current customers' accounts over the next renewal cycle beginning today. Today's announcement eclipses the previous high of $892 million in dividends returned to policyholders in 35 states and the District of Columbia beginning June 1998. Ohio customers were not a part of the program in 1998, but did receive a dividend of $15.9 million in 1994. The program announced today brings to about $3.3 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 financial results. State Farm doesn't plan for dividends when setting prices, but returns money to customers when financial results are better than anticipated and business conditions permit. Changes in financial results that are believed to indicate long-term trends typically are reflected in rate adjustments. State Farm has reduced rates by 15.7 percent in Ohio since 1997.