State Farm Life Insurance Affiliates Expect to Pay Policyholders $633 Million in Dividends for 2009

BLOOMINGTON, Ill., Jan. 7 /PRNewswire/ -- State Farm Life Insurance Company, State Farm Life and Accident Assurance Company and State Farm International Life Insurance Company Ltd. announced an increase in the total dividend payout for 2009. The companies expect to pay to their life insurance policyholders an estimated $633 million in dividend payments on 3.6 million participating policies, a 3% increase over the total dividend payout for 2008.

"Despite the volatility in the marketplace and the economic downturn, the State Farm life insurance affiliates remain financially strong. We continue our long term focus to manage our business for the benefit of our policyholders," said Susan Waring, executive vice president and chief administrative officer of State Farm Life Insurance Company. "We're proud of our dividend history and the value we provide policyholders."

Life insurance policy dividends are paid to the policyholder on the anniversary date of the policy based on the performance of participating policies including investment returns, mortality and expenses. State Farm Life Insurance Company has paid dividends every year since the first policy anniversary in 1930.

     State Farm Life Insurance Company (Not licensed in Mass., N.Y. or Wis.);      State Farm Life and Accident Assurance Company (Licensed in N.Y. and Wis.);      Home Office, Bloomington, Ill.      State Farm International Life Insurance Company Ltd.      Aurora, Ontario  

About State Farm:

State Farm insures more cars and homes than any other insurer in the U.S., is the leading insurer of watercraft and is also a leading insurer in Canada. State Farm's 17,000 agents and 68,000 employees serve more than 78 million auto, fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com(R) or in Canada statefarm.ca(R).

SOURCE State Farm

CONTACT: Carol Carey-Odekirk of State Farm, +1-309-766-6781, Fax, +1-309-766-7861, [email protected]