State Farm Mutual Automobile Insurance Company, the largest insurer of autos in Nebraska and in the nation, announced its auto insurance policyholders in Nebraska will receive dividends totaling $15.8 million.

State Farm employs about 1,600 people in Lincoln at its Hearland Zone office.

State Farm Mutual policyholders in 46 states, the District of Columbia and the Canadian province of New Brunswick will receive a total of $1.25 billion in the company’s latest policyholder dividend declaration, approved by the State Farm Mutual board of directors.

Nebraska policyholders will receive 16.1 percent of their semi-annual premium, the company said. Although the amounts will vary significantly, the average dividend per vehicle in Nebraska is $43. Dividend payments will begin in early April and will continue throughout the year, State Farm said, and most policyholders can expect to receive a check for their dividend near the time of their policy renewal.  Those policyholders receiving less than $15 will be credited to their State Farm renewal premium.

With this dividend, State Farm Mutual says it will have returned $3.8 billion to auto policyholders companywide since 1997. In addition, State Farm Mutual reduced its overall rate level in Nebraska by 11.0 percent from the beginning of 2004 to the end of 2006.

State Farm Insurance also said Thursday that profits climbed 65 percent in 2006 as claims dipped amid a relatively tranquil year for hurricanes and other natural disasters.

The insurer posted earnings of $5.3 billion, up from $3.2 billion the year before when pay-outs soared after a flurry of hurricanes including Katrina, the costliest disaster in U.S. history.

State Farm said catastrophe losses dipped by $4.1 billion from 2005, when the company paid out a record $6.3 billion for claims and expenses in the aftermath of Katrina, Rita and other tropical storms.

Revenue, which includes premium revenue, earned investment income and realized capital gains, totaled $60.5 billion in 2006, up from $59.2 billion a year earlier.

Nationwide, dividends will vary widely, but will average about $35 per insured vehicle for policyholders in 46 states, the District of Columbia and the Canadian province of New Brunswick, the company said.

Analysts say lower claims were the norm for insurers in 2006, which was the lightest year for catastrophe losses since 2002, according to the New York-based Insurance Information Institute.

Northbrook, Ill.-based Allstate Corp., the nation’s second biggest insurer behind State Farm, earlier reported that 2006 earnings rose to a record $5 billion, nearly triple its $1.8 billion in profits the year before.

State Farm notched its third straight year of profits in 2006 after two years of losses that reached a record $5 billion in 2001.

The company said its net worth rose to about $58.1 billion in 2006, up from $50.2 billion the year before.

State Farm is a privately held mutual company, owned by its policyholders. Its holdings include auto, property, health and life insurance companies, as well as banking and mutual fund operations.

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On the Net:

State Farm: www.statefarm.com