News
State Farm Mutual Announces $5 Billion Cash Back to Auto Customers Through Largest Dividend in Company History
State Farm Mutual Automobile Insurance Company (State Farm Mutual) today announced it is paying $5 billion cash back to auto customers through a dividend, in addition to recent auto insurance rate reductions in many states already saving customers $4.6 billion annually.
This summer, State Farm Mutual will begin making one-time distribution to qualifying customers across more than 49 million State Farm Mutual auto vehicles. This dividend is possible due to State Farm Mutual's financial strength and a stronger than expected underwriting performance, which has been reported industry wide. As a mutual company, State Farm® is uniquely positioned to provide value directly to customers rather than shareholders. The payments average $100 per vehicle and will vary by state and premiums paid.
"As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future. That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend." – Jon Farney, State Farm Mutual President and CEO.
In addition to the dividend, downward trending auto repair costs and frequency of collisions in 2025 have allowed State Farm Mutual to lower auto rates in 40 states in recent months, by an average of 10 percent, with premium savings to consumers of $4.6 billion. We will continue to monitor these trends and continue to take appropriate action.
Financial Results
CPI Up 2.4% in January 2026 and a Look at P/C Cost Components
Triple-I chart of the week: CPI Up 2.4% in January 2026 and a Look at P/C Cost Components
State Farm® Reports 2025 Financial Results
State Farm today released financial results for 2025, including strong underwriting results and growth in the value of its investments leading to an expanded net worth, which enhances the ability to meet the needs of customers.
Staying true to its mission of helping people recover, State Farm Mutual and its property and casualty affiliates reported incurred claims of $78 billion, including payments of nearly $15 billion in 2025 to customers experiencing catastrophe claims in addition to our community-level philanthropic contributions. More than 1,000 State Farm employees, agents and agent team members deployed to California to help more than 13,500 customers with claims following devastating wildfires in January 2025.
The State Farm property and casualty affiliates reported earned premium of $111.6 billion and a combined underwriting gain of $1.5 billion.
Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses) was $132.3 billion for 2025 compared to $123.0 billion for 2024. State Farm reported a net income of $12.9 billion in 2025 compared to a net income of $5.3 billion in 2024. The reported net income for 2025 includes the impact of $2.0 billion of realized capital gains, net of tax.
The net worth for State Farm Mutual ended the year at $170.0 billion compared to $145.2 billion at year-end 2024. This increase was due to the property and casualty companies’ pre-tax operating profit and, in large part, an increase in the value of the property and casualty companies’ unaffiliated stock portfolios.
Munich Re's net result exceeds target in 2025 at over €6.1bn - Reinsurance News
Global reinsurer Munich Re’s net result came in above target at €6.121 billion for the 2025 financial year, with a contribution of €5.204 billion from the reinsurance business following a strong performance in property and casualty (P&C) and life and health (L&H) during the year.
2025 was the fifth consecutive year in which Munich Re’s annual profit outperformed the respective guidance, and the more than €6.1 billion is an improvement on 2024’s €5.69 billion, while the Q4’25 net result fell to €945 million from €1.068 billion in Q4’24.
Group-wide, insurance revenue from insurance contracts issued was stable at €60.412 billion in 2025, with Munich Re highlighting growth in the L&H reinsurance segment and at ERGO, its primary insurance arm, which largely offset the deliberate discontinuation of business in P&C reinsurance, and negative currency effects.
Munich Re’s return on equity increased to 18.3% in 2025 compared with 18.2% in 2024, while earnings per share totalled €47.15, an increase on the prior year’s €42.93.
Allianz's Q4’25 operating profit rises 3%, FY'25 hits 'record' €17.4bn
Global insurer Allianz has reported that its total business volume increased by 6.5% year-on-year to €45.7 billion in the fourth quarter of 2025, as operating profit across the Group rose 3% to €4.3 billion, with contributions from all segments.
Group-wide, shareholders’ core net income increased by 12% year-on-year, reaching €2.7 billion in Q4’25.
For the full year 2025, total business volume rose 8.11% compared to the prior year, reaching €186.9 billion with contributions from all segments.
Operating profit in 2025 increased 8.4% to €17.4 billion, Allianz’s highest operating profit ever, the firm noted.
The insurer highlighted the Property/Casualty business as the main growth driver, with all business segments exceeding their full-year outlook midpoints.
Hagerty Reports Full Year 2025 Results; Provides 2026 Growth Outlook
- Total Revenue increased 17% to $1,456 million
- Written Premium increased 14% to $1,194 million
- Added a record 371,000 new members in 2025
- Net Income increased 91% to $149 million
- Adjusted EBITDA increased 46% to $237 million
- 2026 Outlook for sustained Written Premium growth of 15% to 16%
Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced today financial results for the three and twelve months ended December 31, 2025.
"2025 was a standout year for Hagerty, defined by accelerating momentum and record new business count. Top-line gains of 17% were fueled by written premium growth of 14%, and we efficiently converted this revenue into a 91% surge in net income. We also reinvested significantly in our business, including our technology transformation, the launch of Enthusiast+, the roll-out of State Farm to 27 states, as well as our Marketplace expansion into Europe," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.
"In 2026, we will continue to invest back into our member-centric model to drive durable, compounding growth, with written premiums expected to increase 15% to 16%. 2026 also marks a major milestone for Hagerty as we move to a 100% quota share with our long-term partner, Markel. We believe this evolution, combined with our technology-led efficiency initiatives, positions us to generate even higher rates of underlying profit growth and cash flow for our shareholders over the coming years," added Mr. Hagerty.
2026 Outlook/Predictions
Best’s Market Segment Report: Rate Actions, Investment Gains Drive US Property/Casualty Insurance Segment’s 2025 Results; Headwinds May Pressure Carriers in 2026
The U.S. property/casualty (P/C) industry produced its strongest performance of the past decade in 2025, reflecting the combined benefits of improved pricing and investment income, offsetting persistent pressure on claim costs and liability-driven volatility, according to a new AM Best report.
The annual Review & Preview Best’s Market Segment Report, *“Rate Action and Investment Gains Drive US P/C Industry Results Despite Headwinds,”** notes that the U.S. P/C insurance industry experienced sustained momentum on pricing and investment income across key lines of business, and as a result, AM Best is estimating that the P/C segment’s net underwriting income will more than double year over year to $39 billion in 2025, despite significant first-quarter losses from the California wildfires and other weather-driven events. AM Best also expects the calendar-year combined ratio to improve to 95.0 in 2025 from 97.1 in 2024.
However, rate and pricing trends for most of the major lines of business have since stabilized or softened, which AM Best believes will pressure underwriting results in 2026. A severe catastrophe also could lead to results worse than expected.
“AM Best expects lower net premiums written growth in 2026 and tighter margins across the P/C industry in 2026,” said Jacqalene Lentz, senior director, AM Best. “Macroeconomic headwinds, including rising claims costs attributable to higher prices of materials required for home, commercial property and auto physical damage repairs, will likely lead to a slightly higher industry loss ratio.”
Recommended Events
The Hartford’s President A. Morris 'Mo' Tooker, to Keynote InsurTech America Symposium 2026 - Florida Today
The InsurTech America Symposium (IAS) announced that Mo Tooker will deliver the opening keynote address at IAS 2026, taking place April 13–14, 2026 at the Connecticut Convention Center in Hartford.
Formerly the InsurTech Hartford Symposium, the event has freshly rebranded in 2026 as the InsurTech America Symposium, reflecting the nationwide reach of its attendees and the expanding momentum of insurance innovation across the U.S.
“We’re thrilled to have Mo from The Hartford as our keynote speaker at this year’s InsurTech America Symposium,” said Stacey Brown, Founder and President of InsurTech America. “He is exactly the industry leader this moment calls for. His perspective, operating experience, and understanding of how innovation makes a real-world impact will set the tone for a lineup of groundbreaking speakers and conversations. While the event has a new name, our mission remains unchanged.
A property and casualty industry veteran, Tooker has more than three decades of insurance and reinsurance experience. He joined The Hartford in 2015 as chief underwriting officer and has served in a variety of roles since then.
The InsurTech America Symposium (IAS 2026) is a national gathering of insurance and insurtech leaders focused on meaningful connection, collaboration, and innovation. Hosted at the Connecticut Convention Center, IAS 2026 takes place April 13–14, 2026 in Hartford, Connecticut. TICKETS
Cyber Risk
Hackers Used AI to Breach 600 Firewalls in Weeks, Amazon Says
Over the last five weeks, a limited number of hackers broke into more than 600 firewalls across dozens of countries with the help of widely available artificial intelligence tools, according to security research from Amazon.com Inc.
The small group of hackers – or possibly just one person – used commercial generative AI services to quickly take advantage of weak security measures, such as simple sign-in credentials or single-factor authentication, according to a report from the company. The techniques let the intruders compromise firewalls at a scale that would have otherwise required a larger and more skilled team. The Russian-speaking hackers leveraged their access to the security devices, spread across 55 countries, to move further into some victims’ networks in ways that appeared to be setting up ransomware attacks, the report states.
Claims Data Reveals the ‘New Economics of Cyber Crime’
Cyber threats are no longer designed solely to cause immediate business disruption. Instead, it’s about the long-tail aftershocks that follow.
According to Resilience’s 2025 Cyber Risk Report, cyber threats are no longer designed solely to cause immediate business disruption. Instead, cybercriminals now execute prolonged attacks on organizations, increasingly engineered to inflict sustained financial, regulatory and reputational damage.
“Cyber risk is constantly changing. As cybercriminals shift their tactics, a new reality is setting in: the real risk is about more than a security incident’s immediate disruption, it’s about the long-tail aftershocks that follow,” said Vishaal “V8” Hariprasad, co-founder and CEO of Resilience.
During the first half of 2025, the report found that extortion demands to suppress stolen data accounted for less than half (49%) of all extortion claims, but grew to nearly two-thirds (65%) in the second half. For the entire year, data theft-only attacks accounted for more than half (57%) of all attacks, as hackers looked to bypass organizations’ increasingly strong backup practices.
“Claims data gives us the best and most granular insight into the real-world costs of those shockwaves,” Hariprasad said. “Understanding the materiality of the full lifecycle of a cyber incident is the only way to meaningfully arm ourselves against advanced new tactics and grow more resilient to inevitable threats.”
The report also found that infostealers harvested more than 2 billion credentials in 2025 and were frequently detected in victim organizations’ environments before ransomware attacks occurred. Treating infostealer activity as a critical early warning signal that requires immediate action can reduce the likelihood of follow-on attacks.
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