=State Farm Mutual Auto will soon begin issuing $136 million in dividends to Louisiana drivers.
The carrier informed the Louisiana Department of Insurance that eligible customers will receive an email between early August and early September asking them to
select a payment method. Dividends apply to customers who had a State Farm private passenger auto voluntary preferred policy in force as of Dec. 31, 2025.
Customers who don’t have an email address on file will receive a check in the mail. Customers with more than one vehicle insured by State Farm may receive more than one dividend payment.
The payments to Louisiana drivers are part of State Farm’s $5 billion dividend to auto policyholders nationwide. State Farm said in February that the dividend was possible due to the carrier’s financial strength and a stronger than expected underwriting performance.
“Insurance companies base their rates on projections of how much they will collect in premiums and how much they will pay out in claims,” Louisiana Insurance Commissioner Tim Temple said. “When an insurance company takes i
n more money than anticipated and pays out less in claims, whether due to national trends, state-level reforms, or both, policyholders should benefit directly through lower premiums.”
Property rates declined by 12% in the second quarter, while casualty rates increased 2%, driven largely by ongoing claims severity and litigation pressures in the U.S. (Editor’s note: Marsh’s Global Insurance Market Index skews toward larger account business.)
Marsh said that Q2 2026 marks the eighth consecutive quarter of rate decreases, fueled by abundant capacity, strong insurer profitability, a surplus of capital, favorable reinsurance conditions, and higher investment returns.
Strong insurer competition is being seen across all major product lines with all global regions experiencing year-over-year composite rate decreases in Q2 2026, Marsh indicated.
The India, Middle East and Africa (IMEA) region experienced the largest composite rate decrease across all the regions, at 16%, while the Pacific and Latin America and Caribbean (LAC) regions declined by 13% and 9%, respectively
. In the UK, rates declined by 8%, followed by Canada at 7%, Europe by 6%, and Asia by 5%. The overall composite rate in the U.S.–which declined by 1% in Q1 2026–fell by 2% in Q2 2026.