Insurance Companies in US
There are a lot of insurance coverage firms within the USA, all of which have totally different plans and protection choices. It may be troublesome to know which firm to decide on, however there are some things to bear in mind when making your resolution.
First, you will need to contemplate what kind of insurance coverage you want. There are a lot of several types of insurance coverage, reminiscent of well being, life, auto, and owners insurance coverage. As soon as you realize what kind of insurance coverage you want, you can begin narrowing down your decisions.
Subsequent, you will need to examine quotes from totally different insurance coverage firms. That is one of the simplest ways to make sure you’re getting the perfect deal potential. Make sure you examine apples to apples, so that you’re evaluating the identical protection.
Lastly, you will need to learn opinions of insurance coverage firms. This can be a nice method to get an concept of the customer support and claims course of of various firms. You can too discover out which firms have the perfect charges.
Making the choice on which insurance coverage firm to
High 10 Insurance coverage Firms by the Metrics
There are a variety of how to rank the scale of insurance coverage firms. Firms could be measured by their market capitalization (the worth of the corporate on a stock exchange) or through the use of gross sales figures, reminiscent of net premiums written in a yr or what number of insurance policies had been offered. Right here, we study the highest 10 largest insurance coverage firms by market cap, market share, and revenues.
KEY TAKEAWAYS
- Insurance coverage firms are necessary gamers within the international monetary financial system, though they will not be as flashy as funding banks or hedge funds.
- Insurance coverage firms are available in many sizes and focus on totally different coverage traces, from well being to life to property & casualty.
- Market capitalization, or market cap, is the worth of an organization’s excellent shares.
- Some insurance coverage firms are mutually owned, wherein the policyholders are the house owners.
- When rating insurance coverage firms, it is necessary to categorize them in accordance with their product line.
Largest Insurance coverage Firms by Market Capitalization
Market capitalization, or market cap, is the overall worth of an organization’s inventory, and it’s calculated by multiplying the variety of excellent shares by the present share worth. It’s a fast method of figuring out the worth of an organization within the eyes of buyers.
Firms with giant market caps are typically established conservative investments. They probably expertise regular development and provide the least quantity of threat. Mid-cap firms are additionally established however have excessive development potential. Lastly, small-cap firms are sometimes new firms with excessive development potential. Investing in these firms poses the best threat as a result of they’re extra susceptible to financial downturns than the extra established giant and mid-cap firms.
Buyers can purchase shares of publicly-traded firms within the insurance coverage trade. The most important non-health insurance coverage firms by market capitalization on the world stock exchanges as of Q1 2022 are:
Publicly Traded Non-health Insurance coverage Firms
| Firm Identify | Market Capitalization |
|---|---|
| Berkshire Hathaway (U.S.) | $714 billion |
| Ping An Insurance coverage (China) | $141 billion |
| AIA Group (Hong Kong) | $123 billion |
| China Life Insurance coverage (China) | $106 billion |
| Allianz (Germany) | $89 billion |
| Cigna (US) | $76 billion |
| Zurich Insurance coverage (Switzerland) | $67 billion |
| AXA (France) | $65 billion |
| Humana (U.S.) | $55 billion |
| Munich (Germany) | $39 billion |
Publicly Traded Well being Insurance coverage and Managed Well being Care Firms
| Firm Identify | Market Capitalization |
|---|---|
| United Healthcare (UNH) | $448 billion |
| CVS (CVS) | $136 billion |
| Anthem (ANTM) | $109 billion |
| Cigna (CI) | $76 billion |
| Humana (HUM) | $55 billion |
| Centene Company (CNC) | $48 billion |
| Molina Healthcare (MOH) | $18 billion |
| Vibrant Well being Group (BHG) | $2 billion |
| MultiPlan Company (MPLN) | $2 billion |
| Alignment Healthcare (ALHC) | $1.6 billion |
Not all insurance coverage firms are publicly traded. In reality, many insurers are structured as mutual companies, the place policyholders of participating policies are primarily partial house owners of the corporate. The mutual company mannequin for an insurance coverage firm dates again a whole bunch of years, and there are specific advantages conferred on policyholders that don’t exist with publicly traded (inventory firm) insurers.
American Household Insurance coverage is the most important mutual insurance coverage firm within the U.S.1
Largest Insurance coverage Firms by Gross sales and Product Line
It’s helpful to distinguish between the kind of insurance coverage, or line, that’s being thought-about when contemplating the most important insurance coverage firms. Utilizing gross sales information is useful as among the largest insurance coverage firms in america will not be publicly traded and subsequently their market value shouldn’t be simply ascertained.
Property & Casualty
Property and casualty insurers write insurance policies masking property reminiscent of real estate, dwellings, automobiles, and different autos. In addition they write insurance policies coping with liabilities which may be incurred accidentally or negligence associated to these properties to defray the price of lawsuits or medical damages ensuing from such incidents.
The highest U.S. property and casualty firms in 2020 by net premiums written (the sum of money that non-life insurance policies can count on to obtain over the lifetime of the contract, much less commissions and prices) are:2
| Firm | Web Premiums Written |
|---|---|
| State Farm Group | $66.2 billion |
| Berkshire Hathaway (BRK.A) | $46.4 billion |
| Progressive Insurance coverage Group (PGR) | $41.7 billion |
| Allstate Insurance coverage Group (ALL) | $39.2 billion |
| Liberty Mutual | $36.2 billion |
| Vacationers Group (TRV) | $28.8 billion |
| USAA Group | $24.6 billion |
| Chubb (CB) | $24.2 billion |
| Farmers Insurance coverage Group | $20.1 billion |
| Nationwide | $18.5 billion |
Life Insurance coverage Firms
Life Insurance coverage firms promise to pay out a lump sum profit upon the demise of the insured. Though actuarial science has created mortality tables to precisely estimate the longer term legal responsibility of insurance policies to be paid, having monetary power ensures that these firms can meet all of their obligations whereas nonetheless incomes a revenue.
Life Insurance coverage firms within the U.S. could be ranked by direct premium written (the variety of new insurance policies written immediately and never re-insured). For 2020:3
| Firm | Whole 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 Nationwide | $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% |
Well being Insurance coverage Firms
Health insurance firms present insurance policies to cowl all or a part of the policyholder’s well being and medical prices. Insurance policies could also be bought individually or by means of an employer. Technically, america authorities is the most important medical health insurance supplier in America by means of the Medicare program, Social Security, and Medicaid administered by particular person states.
Based mostly on the Nationwide Affiliation of Insurance coverage Commissioners (NAIC) 2020 report, the most important non-government sponsored U.S. medical health insurance firms measured by complete direct premium collected had been:3
| Firm | Whole 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 Well being | $32 billion | 2.5% |
| Molina Healthcare | $21 billion | 1.7% |
| Independence Well being | $21 billion | 1.6% |
What Do the CEOs of the Largest Well being Insurance coverage Firms Make?
The next CEOs of the 6 largest medical health insurance firms make over $15 million yearly:4
- Michael Neidorff of Centene earns $26.4 million
- David Cordani of Cigna earns $19.1 million
- David Wichmann of UnitedHealth Group earns $18.9 million
- Joseph Zubretsky of Molina Healthcare earns $18 million
- Bruce Broussard of Human earns $16.7 million
- Gail Boudreaux of Anthem earns $15.5 million
Are the Giant Insurance coverage Firms Good Investments?
Investing in insurance coverage firms is usually a protected possibility for some buyers. Insurance coverage firms are based to take care of threat, which might in the end cut back the dangers related to investing in them. Medical insurance, topic to speedy adjustments, has the potential for important development in comparison with different forms of insurance coverage firms.
Who Are the Largest Buyers in Insurance coverage Firms?
The most important buyers in insurance coverage firms are typically different establishments. For instance, UnitedHealth Group (UNH) has 4,124 institutional house owners, who maintain a couple of billion shares.5
What Are the Largest Householders Insurance coverage Firms within the U.S.?
The 5 largest owners insurance coverage firms within the U.S. are State Farm, Allstate, USAA, Liberty Mutual, and Farmers.6 Collectively, these firms maintain greater than 45% of the owners’ insurance coverage market share.
What Are the Largest Insurance coverage Firms in Canada?
The 5 largest insurance coverage firms in Canada are Manulife Monetary Company, Nice-West Lifeco, Desjardins, Solar Life Monetary, and Fairfax Monetary.7 Manulife is Canada’s largest insurance coverage firm, using over 35,000 workers and serving greater than 30 million prospects.
The Backside Line
Rating the most important insurance coverage firms could be performed in quite a few methods. Shares of publicly traded firms could be purchased to assist construct a well-diversified funding portfolio that has publicity to the monetary and healthcare sectors. Figuring out which forms of insurance coverage an organization primarily offers with helps decide which companies are rivals and which actually will not be. Taking a look at gross sales figures, or premiums collected in a yr, one may also see how public companies stack up towards privately held or mutual firms which make up a big segment of the trade.
Investopedia doesn’t present funding or monetary recommendation. The data is introduced with out consideration of the funding aims, threat tolerance, or monetary circumstances of any particular investor and won’t be appropriate for all buyers. Previous efficiency shouldn’t be indicative of future outcomes. Investing entails threat, together with the potential lack of principal.
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