State Farm pays $3.1 million to New Brunswick auto policyholders

State Farm Mutual Automobile Insurance Company is paying a total of US$1.25 billion in dividends to its mutual auto insurance policyholders in 46 states, the District of Columbia and the Canadian province of New Brunswick.
In New Brunswick, the dividend will total $3.1 million. The size of each policyholders dividend will vary significantly by jurisdiction, but the average per insured vehicle will be about $35, the company announced in a press release.
Dividend payments will begin in early April 2007 and will continue throughout the year.
The record-breaking payment of dividends, approved by the State Farm Mutual board of directors, eclipses the previous high of just over [US]$1 billion in June, 2000, the company noted in a press release.
The better-than-expected auto results, combined with a [US]$4.1 billion reduction in catastrophe losses in 2006, resulted in an increase in State Farms companywide net income an increase that was almost identical to the previous years decline.”
State Farms auto insurance business represents 63% of the combined net written premium of its property and casualty companies.
State Farms earned premiums in the auto insurance area amounted to US$30.7 billion in 2006, an increase of 0.2% from 2005.
State Farms incurred auto insurance claims and loss expenses totalled US$23.1 billion. Its underwriting gain was US$945 million.