State Farm to Pay Record $5 Billion Dividend to Auto Clients

State Farm Mutual Automobile Insurance Co. will pay a $5 billion cash dividend to its auto-insurance customers after posting strong underwriting profits.

The payments average $100 per vehicle, State Farm said in a statement. It’s the largest dividend in the company’s 103-year history.

“We don’t have shareholders; we don’t have a stock price to protect,” Chief Executive Officer Jon Farney said in a call with reporters. “So when we have stronger-than-expected operating performance, we have a lot of choices about how to put those results to work for the people that we serve.”

State Farm’s auto insurance business posted a ...