State Farm Mutual Automobile Insurance Co. announced Thursday that slightly more than 1 million policyholders in Missouri will receive a share of $21.8 million in dividends. State Farm will distribute $1.25 billion nationwide.
Each policyholder in Missouri will receive 7.3 percent of their semi-annual premium, an average of $22 per vehicle insured, a State Farm press release said.
Tia Lindell, a State Farm spokeswoman, said the dividend was a result of fewer losses than the company anticipated when it estimated premiums last year as well as a higher return on its investments.
The last time State Farm paid out dividends was in 2000.
Lindell said because it is a mutual fund company, the dividends pay directly to policyholders.
“Our policyholders are like our stockholders,” she said.
Payments will begin in April.