State Farm Insurance Company posts amazing profit numbers

Posted Saturday, March 03, 2007 by Ed Harper

According to a leading Insurance company source “State Farm Mutual Automobile Insurance Co. announced today it will pay $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.

The dividends approved by the State Farm Mutual board of directors, eclipses the previous high of just over $1 billion in June, 2000.”

The company has made a substantial amount of profit the last three years even in 2005 the year of Katrina disaster. “The company is reporting an after-tax net income from all sources of $5.32 billion, compared with $5.31 billion in net income reported in 2004 (two years ago). State Farm’s net income in the hurricane – laden year of 2005 was $3.24 billion.”

So, do not feel sorry for the insurance industry. State Farm is going to be sending out dividend checks to policy holders. The average amount to be received will be $35 per policyholder. In my mind, they should lower the rates of their insurance policies across the board, rather than continue to line their pockets with so much money.

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