Top 10 Biggest Insurance Companies by the Metrics

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Top 10 Biggest Insurance Companies by the Metrics

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.

Key Takeaways

  • 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 NameMarket 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 NameMarket 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.

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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:

CompanyNet 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
Nationwide$18.5 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.

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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:

CompanyTotal Direct PremiumMarket Share
New York Life Grp$11.7 billion6.75%
Northwestern Mutual$11.3 billion6.52%
Metropolitan Group (MET)$10.5 billion6.05%
Prudential of America (PRU)$10.1 billion5.80%
Lincoln National$8.4 billion4.83%
MassMutual$7.9 billion4.57%
State Farm$5.0 billion2.87%
Aegon(AEG)$4.9 billion2.80%
John Hancock$4.7 billion2.73%
Minnesota Mutual Grp$4.7 billion2.70%

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:

CompanyTotal Direct PremiumMarket Share
UnitedHealth Group (UNH)$177 billion14.1%
Kaiser$104 billion8.3%
Anthem$77 billion6.2%
Centene Corp.$75 billion6.0%
Humana$74 billion5.9%
CVS Healthcare (CVS)$69 billion5.5%
CIGNA Health$32 billion2.5%
Molina Healthcare$21 billion1.7%
Independence Health$21 billion1.6%

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.
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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.

Investopedia does not provide financial or investment advice. The material is offered without regard for any individual investor’s investing goals, risk tolerance, or financial circumstances, and may not be appropriate for all investors. Past performance does not predict future outcomes. Investing entails risk, including the possibility of losing money.

Investopedia asks authors to back their work with original sources. White documents, government statistics, original reporting, and interviews with industry experts are among them. Where necessary, we also cite original research from other credible publications. You can read more about the guidelines we use to provide accurate, balanced material on our website.

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