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.
Using sales data is helpful as some of the largest insurance companies in the United States are not publicly traded and therefore their market value is not easily ascertained. They also write policies dealing with liabilities that may be incurred by accident or negligence related to those properties to defray the cost of lawsuits or medical damages resulting from such incidents.
The top U.S. property casualty companies in 2018 by net premiums written (the amount of money that non-life policies can expect to receive over the life of the contract, fewer commissions and costs) are: Although actuarial science has created mortality tables to accurately estimate the future liability of policies to be paid, having financial strength ensures that these companies can meet all of their obligations while still earning a profit.
Company Total Direct Premium Market Share Metropolitan Group (MET)$12.6 billion7.87%Northwestern Mutual$10.1 billion6.29% New York Life Group$8.8 billion 5.48%Prudential of America (PRU)$8.6 billion5.33%Lincoln National$6.9 billion4.30%MassMutual$6.6 billion 4.15%Aegon (AEG)$4.6 billion 2.90%John Hancock$4.4 billion2.84%State Farm$4.0 billion2.73%Guardian Life Insurance Co.$3.8 billion2.38% Health insurance companies provide policies to cover all or part of policyholder's health and medical costs. Shares of publicly traded companies can be bought to help build a well-diversified investment portfolio that has exposure to the financial and healthcare sectors.
Insurance companies are key actors of the American economy, hedging risks and covering the costs of accidents. The top American insurance companies are key actors of the financial sector, and they play a major role in the economy through the management of risks.
However, they are engaged in a fierce competition against each other for market share in the US and abroad, and face competition from foreign insurers looking to expand their foothold in their domestic market. These new “Insurance” companies create new ways for people and companies to hedge, manage and anticipate risks and exposure to various hazards, which can impede the activities of traditional insurance companies.
Nevertheless, insurance companies are still a pillar of the US economy, and they will remain in this position for the foreseeable future. The US is such a great business arena for insurers to prosper that they can actually use their national foothold to expand abroad and conquer new markets.
To give you more perspective on the actors of the American financial sector and insurance industry, details about the twenty largest insurance companies included in the S&P 500 index have been listed hereafter. Each company is detailed with presentations of its sub-industry, activities, market capitalization, a direct link to its website, logo, and stock symbol.
For more information on other leading American and financial companies, check our other posts: The insurance companies listed hereafter are ranked by market capitalization in United States Dollars, as of effective close on Friday, February 7, 2021.
Note that if you are searching for information on these companies to invest in their stocks, make sure you know what you are doing as your investment will be subject to significant risks with the evolution of stock prices. To facilitate your browsing in this long list, here are quick links to go directly to the details of the top 20 American insurance companies.
It provides reinsurance (around 70% of premiums received), notably selling catastrophe bonds, and insurance including property, worker’s compensation, crop, professional liability, and accident insurance. Tracing its origins to 1973, Everest Re is primarily engaged in the United States and also operates in Europe, Latin America, and the rest of the world.
Globe Life is a financial services holding company. It operates primarily in the states of Texas, New York, and Oklahoma.
Lincoln National Corporation, often abbreviated UNC, is an insurance and investment management company marketing its services under the name Lincoln Financial Group. Tracing its origins to 1905, UNC operates through subsidiary companies, providing annuities, life insurance, retirement plan services, and group protection.
W. R. Berkley Corporation is a property and casualty insurance holding and reinsurance company. Headquartered in Greenwich, Connecticut and organized in Delaware, W. R. Berkley operates commercial insurance businesses in multiple countries and regions around the world, including the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia, and Australia.
It operates across four lines of business: retirement and income solutions, principal global investors, principal international, and US insurance solutions. Loews Corporation is a conglomerate company with majority-stake holdings in CNA Financial Corporation, Diamond Offshore Drilling, Boardwalk Pipeline Partners, Loews Hotels and Consolidated Container Company.
Primarily engaged in insurance through CNA Financial Corporation and its subsidiaries, it provides property and casualty insurance for businesses and professionals in the U.S., Canada, Europe, and Asia. It is also involved in investments and financial support to other subsidiaries through the CFC Investment Company and asset management services with the Coffin Capital Management Company.
Arthur J. Gallagher & Co., often abbreviated AJG, is a global insurance brokerage and risk management services company. Founded in 1927 and headquartered in Rolling Meadows, Illinois, AJG has become one of the largest insurance brokers in the world, operating in the Americas, Europe, Asia, and Oceania through local insurance brokering subsidiaries.
Founded in 1910 and headquartered in Hartford, Connecticut, the company conducts property and casualty operations, group benefits and mutual funds, selling its products and services primarily through a network of agents and brokers. Willis Towers Watson is a global multinational risk management, insurance brokerage and advisory company.
Headquartered in London, UK, it is the result of the merger between the British company, Willis Group Holdings plc, and the American company, Towers Watson & Co. It has expanded in the United Kingdom, Ireland, Singapore, China, Canada, and Brazil.
The Allstate Corporation is an insurance company headquartered in Northfield Township, Illinois. American International Group, Inc., more commonly known as AIG, is a multinational finance and insurance corporation headquartered in New York City.
It is engaged in general insurance, life and retirement, and a standalone technology-enabled subsidiary. MetLife, Inc. is among the largest global providers of insurance, annuities, and employee benefit programs through its subsidiary Metropolitan Life Insurance Company.
Founded in 1968, MetLife operates in home, car and life insurance, commercial mortgages and securities backed by commercial mortgages, and sovereign debt. It conducts business throughout the United States, Japan, Latin America, Asia’s Pacific region, Europe, and the Middle East.
Founded in 1937 and headquartered in Mayfield Village, Ohio, Progressive offers insurance for motorcycles, boats, RVs and commercial vehicles, as well as home insurance. Aon plc is a global professional services company providing risk, retirement and health solutions, headquartered in London, UK.
Created in 1982 with the merger of Ryan Insurance Group with Combined Insurance Company of America, Aon is particularly involved in the commercial risk and reinsurance brokerage industry. It is also operating in the business process outsourcing industry and property investment and management.
Tracing its origins to 1905 and headquartered in New York City, Marsh & McLennan operates in insurance through its subsidiaries, Marsh, Guy Carpenter and Sardine Lloyd Thompson, and in consulting with Mercer and Oliver Wyman Group. Chubb Limited is the parent company of Chubb, a global provider of insurance products in commercial and personal property and casualty, accident and health, reinsurance, and life insurance to multinational corporations and local businesses, individuals, and insurers seeking reinsurance coverage.
Tracing its origins to 1882, Chubb is headquartered in Zurich, Switzerland, and it operates in 54 countries and territories. To give you a quick overview of the largest American insurance companies in 2020, here is a synthesizing image regrouping the information of the top 10.
Overall, the annual rankings were relatively stable in the top slots. Chinese-based Ping An Insurance (Group) Company of China Ltd. was the newcomer in the New top five, following a 2017 year-over-year premium increase of 30%.
The Chinese insurer jumped five slots to rank fourth in 2017. Another company to make significant New progress was Berkshire Hathaway Inc., which climbed to No.
The A.M. Best rankings of the world’s largest global insurance companies were released in the December 31, 2018, issue of Between. The rankings were based on Bustling data and additional A.M. Best research.