There are many methods for ranking the size of insurance firms. Companies may be measured by their market capitalization (the company’s worth on a stock exchange) or by sales numbers such as net premiums written in a year or the number of policies sold. In this section, we look at the top ten insurance firms in terms of market capitalization, market share, and revenue.
- Insurance firms, although not as showy as investment banks or hedge funds, play a vital role in the global financial industry.
- Insurance firms range in size and specialize in a variety of insurance lines, including health, life, and property and casualty.
- The market capitalisation, or market cap, of a firm is the value of its outstanding shares.
- Some insurance businesses are cooperatively owned, which means that the policyholders own them.
- When rating insurance firms, it is critical to divide them into product lines.
Largest Insurance Companies by Market Capitalization
The overall worth of a company’s stock, or market capitalization, is computed by multiplying the number of outstanding shares by the current share price. It is a simple approach for investors to determine the worth of a firm.
Companies with substantial market capitalizations are often well-established safe investments. They are expected to develop steadily and provide the least degree of danger. Mid-cap firms are likewise well-established, yet they offer tremendous development potential. Finally, small-cap enterprises are often fresh ventures with significant growth potential. Investing in these firms carries the most risk since they are more sensitive to economic downturns than larger and mid-cap corporations.
Investors may purchase stock in publicly listed insurance businesses. The following corporations have the highest market capitalizations on global stock markets as of Q1 2022:
Publicly Traded Non-health Insurance Companies
|Company Name||Market Capitalization|
|Berkshire Hathaway (U.S.)||$714 billion|
|Ping An Insurance (China)||$141 billion|
|AIA Group (Hong Kong)||$123 billion|
|China Life Insurance (China)||$106 billion|
|Allianz (Germany)||$89 billion|
|Cigna (US)||$76 billion|
|Zurich Insurance (Switzerland)||$67 billion|
|AXA (France)||$65 billion|
|Humana (U.S.)||$55 billion|
|Munich (Germany)||$39 billion|
Publicly Traded Health Insurance and Managed Health Care Companies
|Company Name||Market Capitalization|
|UnitedHealthcare (UNH)||$448 billion|
|CVS (CVS)||$136 billion|
|Anthem (ANTM)||$109 billion|
|Cigna (CI)||$76 billion|
|Humana (HUM)||$55 billion|
|Centene Corporation (CNC)||$48 billion|
|Molina Healthcare (MOH)||$18 billion|
|Bright Health Group (BHG)||$2 billion|
|MultiPlan Corporation (MPLN)||$2 billion|
|Alignment Healthcare (ALHC)||$1.6 billion|
Insurance firms are not all publicly listed. In reality, many insurers are formed as mutual corporations, with participating policyholders becoming virtually partial owners of the firm. The mutual company concept for an insurance firm extends back hundreds of years, and some advantages are provided to policyholders that are not available to publicly listed (stock company) insurers.
American Family Insurance is the nation’s biggest mutual insurance firm.
Largest Insurance Companies by Sales and Product Line
When comparing the top insurance firms, it is necessary to distinguish between the types of insurance, or lines, that are being evaluated. Because some of the major insurance firms in the United States are not publicly listed, it is difficult to determine their market worth.
Property & Casualty
Property and casualty insurers write policies that protect real properties, residences, automobiles, and other vehicles. They also issue policies to cover liabilities that may arise as a consequence of an accident or carelessness on such properties, in order to cover the costs of litigation or medical expenses ensuing from such accidents.
In terms of net premiums written (the amount of money that non-life policies may anticipate to collect throughout the life of the contract, minus commissions and fees), the top U.S. property and casualty firms in 2020 are:
|Company||Net Premiums Written|
|State Farm Group||$66.2 billion|
|Berkshire Hathaway (BRK.A)||$46.4 billion|
|Progressive Insurance Group (PGR)||$41.7 billion|
|Allstate Insurance Group (ALL)||$39.2 billion|
|Liberty Mutual||$36.2 billion|
|Travelers Group (TRV)||$28.8 billion|
|USAA Group||$24.6 billion|
|Chubb (CB)||$24.2 billion|
|Farmers Insurance Group||$20.1 billion|
Life Insurance Companies
Life insurance firms pledge to pay out a lump sum payout upon the insured’s death. Despite the fact that actuarial science has developed mortality tables to precisely anticipate the future liability of policies to be paid, financial strength assures that these organizations can cover all of their commitments while still generating a profit.
Life insurance firms in the United States may be rated based on direct premium written (the number of new policies written directly and not re-insured).For 2020:
|Company||Total Direct Premium||Market Share|
|New York Life Grp||$11.7 billion||6.75%|
|Northwestern Mutual||$11.3 billion||6.52%|
|Metropolitan Group (MET)||$10.5 billion||6.05%|
|Prudential of America (PRU)||$10.1 billion||5.80%|
|Lincoln National||$8.4 billion||4.83%|
|State Farm||$5.0 billion||2.87%|
|John Hancock||$4.7 billion||2.73%|
|Minnesota Mutual Grp||$4.7 billion||2.70%|
Health Insurance Companies
Health insurance firms provide plans that cover all or a portion of a policyholder’s health and medical expenses. Individual policies may be acquired on their own or via an employer. Technically, the federal government is the main provider of health insurance in the United States, with Medicare, Social Security, and Medicaid managed by individual states.
According to the National Association of Insurance Commissioners (NAIC) 2020 report, the following are the biggest non-government supported U.S. health insurance firms by total direct premium collected:
|Company||Total Direct Premium||Market Share|
|UnitedHealth Group (UNH)||$177 billion||14.1%|
|Centene Corp.||$75 billion||6.0%|
|CVS Healthcare (CVS)||$69 billion||5.5%|
|CIGNA Health||$32 billion||2.5%|
|Molina Healthcare||$21 billion||1.7%|
|Independence Health||$21 billion||1.6%|
What Do the CEOs of the Largest Health Insurance Companies Make?
The CEOs of the six major health insurance businesses earn more than $15 million each year:
- Centene’s Michael Neidorff receives $26.4 million.
- Cigna’s David Cordani receives $19.1 million.
- UnitedHealth Group’s David Wichmann makes $18.9 million.
- Molina Healthcare’s Joseph Zubretsky makes $18 million.
- Human’s Bruce Broussard receives $16.7 million.
- Anthem’s Gail Boudreaux receives $15.5 million.
Are the Large Insurance Companies Good Investments?
For some individuals, investing in insurance firms might be a secure bet. Insurance firms are formed to cope with risk, which might eventually lower the dangers of investing in them. When compared to other forms of insurance firms, health insurance, which is prone to rapid change, offers the potential for enormous development.
Who Are the Largest Investors in Insurance Companies?
Other institutions are often the major investors in insurance firms. UnitedHealth Group (UNH), for example, has 4,124 institutional shareholders who possess more than one billion shares.
What Are the Largest Homeowners Insurance Companies in the U.S.?
State Farm, Allstate, USAA, Liberty Mutual, and Farmers are the five biggest homes insurance providers in the United States. These businesses together control more than 45% of the homeowners’ insurance market.
What Are the Largest Insurance Companies in Canada?
Manulife Financial Corporation, Great-West Lifeco, Desjardins, Sun Life Financial, and Fairfax Financial are Canada’s five biggest insurance firms. Manulife is Canada’s biggest insurance corporation, with over 35,000 workers and 30 million clients.
The Bottom Line
There are many methods for ranking the biggest insurance businesses. Shares of publicly listed corporations may be purchased to assist in the development of a well-diversified investment portfolio with exposure to the financial and healthcare sectors. Identifying which sorts of insurance a business typically handles helps in determining which companies are rivals and which are not. Looking at sales data or premiums received in a year, one may assess how publicly traded firms compare against privately owned or mutual companies, which account for a substantial portion of the sector.
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