State Farm has announced its financial results for 2025, reporting strong underwriting performance and an increase in investment value. This growth has expanded the company’s net worth and strengthened its ability to serve customers.
The positive results in State Farm’s auto insurance business led State Farm Mutual Automobile Insurance Company to declare a one-time $5 billion cash back dividend for eligible auto customers. This dividend will be distributed in 2026 and comes on top of recent auto rate reductions across 40 states, which have resulted in approximately $4.6 billion per year in lower premiums for customers. Additionally, State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported nearly $1 billion in total dividends to qualified life policyholders, marking the highest amount ever paid by these companies.
State Farm Mutual and its property and casualty affiliates reported incurred claims totaling $78 billion for the year. Of this amount, nearly $15 billion was paid out to customers affected by catastrophe claims, alongside community-level philanthropic contributions. Following severe wildfires in California during January 2025, more than 1,000 employees, agents, and team members were deployed to assist over 13,500 affected customers. To date, State Farm Mutual and State Farm General Insurance Company have issued over $5 billion in payments related to these wildfires. The total payout is expected to reach $7 billion as claim processing continues.
The group now provides insurance and financial services across nearly 97 million policies and accounts. It also offers third-party products such as variable annuities, banking services, mutual funds, and pet medical coverage.
For 2025, the group reported an underwriting gain—an improvement from the previous year that aligns with broader industry trends. As a mutual company without shareholders, State Farm Mutual can return value directly to policyholders through dividends.
Property and casualty affiliates recorded earned premium of $111.6 billion with a combined underwriting gain of $1.5 billion—a reversal from the prior year’s loss of $6.1 billion on earned premium of $103.0 billion in 2024. Improved auto insurance results contributed significantly to this change; however, home insurance results were negatively impacted by the Los Angeles wildfires early in the year.
Combined with investment income of $7.0 billion, property and casualty operations produced a pre-tax operating profit of $8.5 billion for 2025 compared with a loss of $111 million reported for 2024.
Life insurance affiliates issued a record volume of new policies totaling $130 billion for the year-end individual life insurance in force figure of $1.2 trillion; they also paid out a record-setting $924 million in dividends to policyholders.
Total revenue—including premiums, investment income, and realized capital gains—reached $132.3 billion compared with last year’s figure of $123.0 billion. Net income rose sharply from $5.3 billion in 2024 to $12.9 billion this year; this includes after-tax realized capital gains totaling about $2 billion.
At year-end 2025, net worth stood at $170.0 billion versus last year’s closing balance of $145.2 billion—mainly due to operational profits as well as increases in unaffiliated stock portfolio values held by property and casualty companies.
The company’s core lines showed varied performance:
– Auto: Represented 63% of property/casualty written premium with earned premium at $71.3 billion; incurred claims/loss adjustment expenses totaled $52.6 billion; all other underwriting expenses reached $14.1 billion; resulting underwriting gain was $4.6 billion.
– Homeowners/CMP/Other: Made up 36% of written premium; earned premium was $39.2 billion; incurred claims/loss adjustment expenses were $33.6 billion; other underwriting expenses were $8.6 billion; leading to an underwriting loss of $3.l billion.
– Life: Premium income was reported at $6.l9 billion with net income reaching $2.l billion.
– Health: Individual health operations posted an underwriting loss (excluding reserve changes) of $189 million on net written premiums totaling $756 million.
– Investment Planning Services: Assets under management grew from last year’s total ($15.l2 billion) up to $17.l5 billion despite posting a combined net loss ($39 million).
Each affiliate within the State Farm group operates independently regarding solvency requirements regardless of others’ financial condition or solvency status.
State Farm VP Management Corp., registered as a broker-dealer entity separate from those providing advisory services or banking/insurance products via affiliated or unaffiliated entities—reminds investors that securities are not FDIC insured nor bank guaranteed but subject instead to market risk including potential principal losses.
