insurance company

 

Metrics for the Top Insurance Companies

There are various ways of positioning the size of insurance agency. Market capitalization, or the value of a company on a stock exchange, or sales figures like the number of policies sold or net premiums written in a year can be used to measure a company. By market cap, market share, and revenues, we examine the top 10 insurance companies. 

Important Takeaways Insurance companies play a significant role in the global financial economy, despite the fact that they may not be as well-known as investment banks or hedge funds. Insurance companies come in all shapes and sizes and focus on a variety of policy types, including health, life, and property and casualty. The value of a company's outstanding shares is referred to as its market capitalization, or market cap. 

Policyholders are the owners of some mutually owned insurance companies.

The largest insurance companies by market capitalization Market capitalization, or market cap, is the total value of a company's stock. It is calculated by multiplying the number of outstanding shares by the current share price. This is important to do when ranking insurance companies. Investors can quickly ascertain a company's value using this method. 

Companies with large market caps are typically conservative investments with a long history. They most likely have steady growth and offer the lowest risk. Mid-sized businesses are also established, but they have a lot of room for expansion. Last but not least, small-cap businesses are frequently start-ups with a lot of room for expansion. Because they are more susceptible to economic downturns than more established large and mid-cap companies, investing in these businesses carries the greatest risk. 

Shares in insurance-related publicly traded businesses are available for purchase by investors. As of Q1 2022, the following are the largest non-health insurance companies by market capitalization on global stock exchanges:

Public Non-health care coverage Organizations

 

Organization Name                                               Market Capitalization

Berkshire Hathaway (U.S.)                                          $714 billion

Ping A Protection (China)                                            $141 billion

AIA Gathering (Hong Kong)                                       $123 billion

China Disaster protection (China)                               $106 billion

Allianz (Germany)                                                       $89 billion

Cigna (US)                                                                   $76 billion

Zurich Protection (Switzerland)                                   $67 billion

AXA (France)                                                               $65 billion

Humana (U.S.)                                                             $55 billion

Munich (Germany)                                                              $39 billion

Market cap information as of Walk 1, 2022.

 Source: Yahoo! Finance

 Publicly Traded Health Insurance and Managed Health Care Companies Company Name Market Capitalization United Healthcare (UNH) is worth $448 billion; CVS (CVS) is worth $136 billion; Anthem (ANTM) is worth $109 billion; Cigna (CI) is worth $76 billion; Humana (HUM) is worth $55 billion; Centene Corporation (CNC) is worth $48 billion; Molina Healthcare (MOH) is worth $18 billion; Bright Health Group (BHG) is Source: Yahoo! Finances Not every insurance company trades on the stock market. In point of fact, a great number of insurers are organized as mutual companies, with policyholders of participating policies serving as the company's essentially partial owners. Benefits for policyholders that are not provided by publicly traded (stock company) insurers exist in the mutual company model, which dates back hundreds of years.

When looking at thelargest insurance companies, it is helpful to distinguish between the types of insurance or product lines that are being considered. Because some of the largest insurance companies in the United States are not publicly traded, it is difficult to determine their market value. Because of this, it is helpful to use sales data.

Property & Casualty Insurers write policies that cover real estate, homes, automobiles, and other types of vehicles. They likewise compose strategies managing liabilities that might be brought about unintentionally or carelessness connected with those properties to settle the expense of claims or clinical harms coming about because of such episodes.

By net premiums written (the amount that non-life policies can anticipate receiving over the course of the contract, less commissions and costs), the top U.S. property and casualty companies in 2020 are:

Company Net Premiums Written State Farm Group is worth $66.2 billion, while Berkshire Hathaway (BRK.A) is worth $46.4 billion. Progressive Insurance Group (PGR) is worth $41.7 billion. Allstate Insurance Group (ALL) is worth $39.2 billion. Liberty Mutual is worth $36.2 billion. Travelers Group (TRV) is worth $28.8 billion. USAA Group is worth $24.6 billion. Farmers Insurance Group is worth $20.1 billion. Even though mortality tables have been created by actuarial science to accurately estimate the future liability of to be paid policies, these companies' financial strength ensures that they can meet all of their obligations and still make a profit.

The number of new policies written directly and not re-insured can be used to rank life insurance providers in the United States. For 2020:

Companies'                       Total Direct Premium            Market Share

New York Life Grp                        $11.7 billion                    6.75 percent

Northwestern Mutual                     $11.3 billion                    6.52 percent

 Metropolitan Group (MET)          $10.5 billion                    6.05 percent

Prudential of America (PRU)        $10.1 billion                    5.80 percent

 Lincoln National                           $8.4 billion                      4.83 percent

 MassMutual                                  $7.9 billion                      4.57 percent

  State Farm                                    $5.0 billion                     2.87 percent

 AEGON (AEG)                             $4.9 billion                     2.80 percent

 John Hancock                                $4.7 billion                     2.73 percent

Minnesota Mutual Grp                   $4.7 billion                     2.70 percent

Individual policies can be purchased or purchased through an employer. Through the Medicare program, Social Security, and Medicaid programs that are administered by individual states, the federal government of the United States is technically the largest provider of health insurance in the nation.

The largest non-government sponsored U.S. health insurance companies, as measured by total direct premium collected, were, in accordance with the NAIC 2020 report:

Companies' Total Direct Premium Market Share UnitedHealth Group (UNH) $177 billion 14.1 percent Kaiser $104 billion 8.3 percent Anthem $77 billion 6.2 percent Centene Corp. $75 billion 6.0 percent Humana $74 billion 5.9 percent CVS Healthcare (CVS) $69 billion 5.5 percent CIGNA Health $32 billion 2.5 percent Molina Healthcare $21 billion 1.7% Independence Health $21 billion 1.6%

The CEOs of the six largest insurers of health insurance earn more than $15 million annually:

Centene's Michael Neidorff makes $26.4 million; Cigna's David Cordani makes $19.1 million; UnitedHealth Group's David Wichmann makes $18.9 million; Molina Healthcare's Joseph Zubretsky makes $18 million; Human's Bruce Broussard makes $16.7 million; and Anthem's Gail Boudreaux makes $15.5 million.

For some investors, investing in insurance companies may be a safe choice. Because insurance companies were established to deal with risk, investing in them may ultimately reduce the risks. When compared to other types of insurance companies, health insurance has the potential for significant growth. It is subject to rapid change.

 Who are the largest insurance company investors?

Most of the time, other kinds of institutions are the biggest investors in insurance companies. For instance, United Health Gathering (UNH) has 4,124 institutional proprietors, who hold more than one billion offers.

 Which of the largest insurance companies for homeowners in the United States?

1.     1.  State Farm

2.     2.  Allstate

3.      3.  USAA,

4.      4.  Liberty Mutual

 Farmers are the five largest homeowners insurance providers in the United States.

Together, these businesses control more than 45% of the market for homeowners' insurance.

WhichCanadian insurance companies are the largest?

1.   1.   Manulife Financial Corporation

2.    2.  Great-West Lifeco

3.   3.   Desjardins

4.   4.  Sun Life Financial

5.   5.  Fairfax Financial

Manulife Financial Corporation, Great-West Lifeco, Desjardins, Sun Life Financial, and Fairfax Financial are the five biggest insurance companies in Canada.

Manulife is the largest insurance company in Canada, with morethan 35,000 employees and more than 30 million clients.

The Bottom Line There are a number of ways to rank the largest insurance companies. It is possible to purchase shares of publicly traded businesses to assist in the creation of an investment portfolio that is well-diversified and has exposure to the healthcare and financial sectors. It is easier to determine which businesses are competitors and which are not by determining which insurance products a company primarily deals with. One can also see how public companies stack up against privately held or mutual companies, which make up a large portion of the industry, by looking at sales figures or annual premiums collected.

Investopedia does not offer financial or investment advice. The information may not be appropriate for all investors because it is presented without taking into account any individual investor's investment objectives, risk tolerance, or financial circumstances. Performance in the past does not guarantee success in the future. Risks associated with investing include the possibility of principal loss.