The size of insurance firms can be measured in a variety of ways. Market capitalization (the worth of a corporation on a stock exchange) or sales metrics, such as net premiums written in a year or the number of policies sold, can be used to assess a company. We look at the top ten largest insurance businesses in terms of market capitalization, market share, and revenues.
Market Capitalization of the Largest Insurance Companies
The total worth of a company’s stock, also known as market capitalization, is computed by multiplying the number of outstanding shares by the current share price. It’s a quick approach for investors to figure out how much a firm is worth.
Companies having significant market capitalizations are generally considered to be safe investments. They are likely to grow steadily and pose the least degree of risk. Mid-cap corporations are well-established but have a lot of room for expansion. Finally, small-cap companies are frequently startup businesses with significant growth potential. Investing in small companies carries the most risk because they are more susceptible to economic downturns than larger and mid-cap corporations.
Investors can purchase shares in publicly traded insurance businesses. As of Q1 2022, the following are the top non-health insurance corporations by market capitalization on global stock exchanges:
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|
Not all insurance companies are listed on the stock exchange. In fact, many insurers are constituted as mutual firms, with participating policyholders acting as partial owners of the company. The mutual company model for insurance extends back hundreds of years, and policyholders receive certain benefits that are not available from publicly traded (stock company) insurers.
When looking at the top insurance firms, it’s important to distinguish between the types of insurance, or lines, that are being considered. Because some of the top insurance businesses in the United States are not publicly traded, it’s easier to estimate their market value using sales data.
Property and casualty insurers write policies that cover real estate, homes, automobiles, and other vehicles. They also construct policies to cover liabilities that may be incurred as a result of an accident or negligence on those properties, in order to cover the costs of lawsuits or medical losses resulting from such accidents.