Top 10 insurance companies in USA | Top 10 Biggest Insurance Companies In USA 2024
The size of insurance companies can be ranked in several ways. Businesses can be evaluated based on sales data, such as the number of policies sold or net premiums written in a given year, or by looking at their market capitalization, which is the company's value listed on a stock exchange. Here, we look at the market capitalization, market share, and revenue of the top ten biggest insurance companies.
We'll be looking at the top 15 insurance companies in the USA in this article. You can visit the top 5 insurance companies in the USA directly to avoid reading our in-depth analysis.
Important lessons learned
- Insurance companies, while not as ostentatious as investment banks or hedge funds, are nonetheless significant participants in the global financial economy.
- Insurance companies vary widely in size and focus on different product lines, such as property & casualty, life, and health.
- The value of a company's outstanding shares is its market capitalization, also known as its market cap.
- There are insurance companies that are jointly owned by policyholders.
- It's critical to classify insurance companies based on their product lines when ranking them.
Biggest Insurance Companies Based on Market Value
The total value of a company's stock is known as market capitalization, or market cap, and is determined by multiplying the number of outstanding shares by the share price at the time of calculation. It is a quick method of figuring out how much investors think a company is worth.
Large market capitalization businesses are usually cautious, well-established investments.They probably have the least amount of risk and grow steadily. Mid-cap businesses have a great potential for growth despite being established as well. Finally, small-cap firms are frequently young businesses with enormous development potential. Because these businesses are more susceptible to economic downturns than larger, more established companies, investing in them carries the highest risk.
Shares of publicly traded insurance companies are available for purchase by investors. As of Q1 2022, the biggest non-health insurance firms by market capitalization on global stock exchanges are:
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 |
Health Insurance and Managed Care Businesses with Public Trading
| 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 |
Not every insurance provider is listed on a stock exchange. As participating policyholders are effectively part owners of the company, many insurers are actually set up as mutual companies. Since mutual companies have been in business for hundreds of years, policyholders have benefited from a number of advantages not available to publicly traded (stock company) insurers.
Fast Fact:The biggest mutual insurance provider in the United States is American Family Insurance.
Biggest Insurance Companies in Terms of Product Line and Sales
When evaluating the biggest insurance companies, it is helpful to distinguish between the various insurance types, or lines. Since some of the biggest insurance companies in the US are not publicly traded and so it is difficult to determine their market value, using sales data is helpful.
Asset & Liability
Property, including real estate, homes, automobiles, and other vehicles, are covered by policies written by property and liability insurers. In order to cover the expense of lawsuits or medical damages brought on by such incidents, they also write policies covering liabilities that may be incurred by accident or negligence related to those properties.
According to net premiums written (the total amount of money non-life policies should expect to receive over the course of the contract, less commissions and costs), the top property and casualty companies in the United States 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 |
| Nationwide | $18.5 billion |
Life Insurance Companies
Companies that offer life insurance pledge to pay out a lump sum payment in the event that the insured passes away. Strong financial standing guarantees that these businesses can fulfill all of their responsibilities while still turning a profit, even though actuarial science has produced mortality tables to precisely estimate the future liability of policies to be paid.
The number of new policies written directly without reinsurance allows life insurance companies in the United States to be ranked according to direct premium written. In 2020:
| Name Of 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
Policies from health insurance providers may fully or partially pay for the policyholder's medical expenses. Policies can be obtained directly from an employer or on an individual basis. In a technical sense, the government of the United States provides the majority of health insurance in the country through the state-managed Medicaid programs, Social Security, and Medicare programs.
The largest non-government sponsored health insurance companies in the United States, as determined by the total direct premium collected, were as follows, according to the National Association of Insurance Commissioners (NAIC) 2020 report:
| Name of 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% |
How Much Do the Biggest Health Insurance Companies' CEOs Make?
The subsequent The top six health insurance companies' CEOs earn more than $15 million a year.
- Centene's Michael Neidorff makes $26.4 million.
- Cigna's David Cordani makes $19.1 million.
- David Wichmann makes $18.9 million as a UnitedHealth Group employee.
- Molina Healthcare's Joseph Zubretsky makes $18 million.
- Human's Bruce Broussard makes $16.7 million.
- Anthem's Gail Boudreaux makes $15.5 million.
Which American Homeowners Insurance Companies Are the Biggest?
In the United States, State Farm, Allstate, USAA, Liberty Mutual, and Farmers are the top five homeowners insurance providers. Collectively, these businesses control over 45% of the market for homeowners' insurance.
The Final Word
There are several methods available for ranking the biggest insurance providers. To contribute to the development of a well-diversified investment portfolio with exposure to the financial and healthcare sectors, shares of publicly traded companies can be purchased. Determining which companies are competitors and which aren't can be done by looking at the types of insurance that a company deals with most frequently. Comparing public companies to privately held or mutual companies—which comprise a significant portion of the industry—one can also see how they compare based on sales figures or premiums collected over the course of a year.
We don't offer financial or investing advice. The information may not be appropriate for all investors and is provided without taking into account the financial situation, risk tolerance, or investment objectives of any particular investor. It is impossible to forecast future events based only on past performance. Investing carries risk, which includes the potential for principal loss.
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