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Top 10 Insurance Companies by the Metrics

Top 10 Insurance Companies by the Metrics

There are several ways to rank the size of insurance companies. Companies can be measured using their market capitalization (the company’s value on the stock exchange) or sales statistics, such as net premiums written in a year or how many policies were sold. Here, we examine the top 10 largest insurance companies by market cap, market share, and revenue.

KEY TAKEAWAYS

  • Insurance companies are important players in the global financial economy, although they may not be as flashy as investment banks or hedge funds.

  • Insurance companies come in many sizes and specialize in different policy lines, from health to life to property & casualty.

  • Market capitalization, or market cap, is the value of a company’s outstanding shares.

  • Some insurance companies are mutually owned, in which the policyholders are the owners.

  • When ranking insurance companies, it’s important to categorize them according to their product line.

Largest insurance company by market capitalization

Market capitalization, or market cap, is the total value of a company’s stock and is calculated by multiplying the number of shares outstanding by the current share price. It is a quick way to determine the value of a company in the eyes of investors.

Companies with large market caps are usually founded on conservative investments. They are likely to experience steady growth and offer the least amount of risk. Mid-cap companies are also established but have high growth potential. Finally, small-cap companies are often new companies with high growth potential. Investing in these companies poses the greatest risk as they are more vulnerable to economic downturns than more established large and mid-cap companies.

Investors can buy shares of publicly-traded companies in the insurance industry. The largest non-health insurance companies by market capitalization on world stock exchanges in the first quarter of 2022 are:

insurance companies usa top 10
insurance companies usa top 10

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
Market cap data as of March 1, 2022. Source: Yahoo! Finance

Publicly Traded Health Insurance and Managed Health Care Companies

Company Name                                   Market Capitalization
United Healthcare (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
Market cap data as of March 1, 2022. Source: Yahoo! FinanceNot all insurance companies are publicly traded. In fact, many insurers are structured as mutual companies, where participating policyholders are essentially part owners of the company. The mutual company model for an insurance company dates back hundreds of years and offers policyholders certain benefits that do not exist with publicly traded (stock company) insurers.
American Family Insurance is the largest mutual insurance company in the United States

Largest insurance company by sales and product line

Differentiating between types or lines of insurance is useful when considering the best insurance companies. Using sales data is helpful because some of the largest insurance companies in the United States are not publicly traded and therefore their market value cannot be easily ascertained.

Property and Casualty

Property and casualty insurers write policies covering property such as real estate, residences, cars, and other vehicles. They also write liability policies that cover lawsuits related to these properties due to accidents or negligence or medical damages resulting from such incidents.

The top U.S. property and casualty companies written in 2020 by net premiums (non-life policies can expect to earn over the term of the contract, fewer commissions, and expenses) 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
Nationwide $18.5 billion

Life insurance company

Life insurance companies promise to pay a lump sum benefit after the death of the insured. While actuarial science has developed mortality tables to accurately estimate future liability payments for policies, having financial strength ensures that these companies can meet all their obligations while still earning a profit.

Life insurance companies in the United States can be ranked by direct written premiums (the number of new policies written directly and not reinsured). 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%
MassMutual $7.9 billion 4.57%
State Farm $5.0 billion 2.87%
Aegon (AEG) $4.9 billion 2.80%
John Hancock $4.7 billion 2.73%
Minnesota Mutual Grp $4.7 billion 2.70%

Health insurance companies

Health insurance companies offer policies to cover all or part of the policyholder’s health and medical expenses. Policies can be purchased individually or through an employer. Technically, the United States government is America’s largest health insurance provider with the Medicare program, Social Security, and Medicaid administered by individual states.

Based on the National Association of Insurance Commissioners (NAIC) 2020 report, the largest privately sponsored U.S. health insurance companies as measured by total premiums collected are:

Company Total Direct Premium Market Share
UnitedHealth Group (UNH) $177 billion 14.1%
Kaiser $104 billion 8.3%
Anthem $77 billion 6.2%
Centene Corp. $75 billion 6.0%
Humana $74 billion 5.9%
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%
insurance companies usa top 10
insurance companies usa top 10

more info all-time

What do the CEOs of the largest health insurance companies do?
The following CEOs of the 6 largest health insurance companies earn more than $15 million annually:

Centene’s Michael Niedorf earned $26.4 million
Signor David Cordani earned $19.1 million
UnitedHealth Group’s David Wichman earned $18.9 million
Molina Healthcare’s Joseph Zubretsky earned $18 million
Bruce Broussard of Human earned $16.7 million
Anthem’s Gail Boudreaux earned $15.5 million
Do large insurance companies make better investments?
Investing in insurance companies can be a safer option for some investors. Insurance companies are established to deal with risk, which can ultimately reduce the risk associated with their investments. Health insurance, subject to rapid change, has significant growth potential compared to other types of insurance companies.

Who are the biggest investors in insurance companies?
The largest investors in insurance companies are usually other institutions. For example, UnitedHealth Group (UNH) has 4,124 institutional owners, who own more than a billion shares.

What are the largest homeowners insurance companies in the United States?
The five largest homeowners insurance companies in the United States are State Farm, Allstate, USAA, Liberty Mutual, and Farmers.

Together, these companies hold more than 45% share of the homeowner’s insurance market.

What is Canada’s largest insurance company?
Canada’s five largest insurance companies are Manulife Financial Corporation, Great-West Lifeco, Desjardins, Sun Life Financial, and Fairfax Financial.

Manulife is Canada’s largest insurance company, employing more than 35,000 employees and serving more than 30 million customers.

Bottom line
Ranking the largest insurance companies can be done in several ways. Shares of publicly traded companies can be purchased to help build a well-diversified investment portfolio that has exposure to the financial and healthcare sectors. Identifying which companies primarily deal in what type of insurance helps determine which firms are competitors and which are not. By looking at sales figures, or premiums collected in a year, one can also see how public companies stack up against the privately held or mutual firms that make up a large portion of the industry.

Investopedia does not provide investment or financial advice. The information is presented without regard to the investment objectives, risk tolerance, or financial situation of any particular investor and may not be suitable for all investors. Past performance is not indicative of future results. Investments involve risk, including the potential loss of capital.

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