– Best insurance companies in the United States
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.
Market capitalization, or market cap, is the value of a company’s outstanding shares. Some insurance companies are mutually owned, in which the policy holders are the owners.
When ranking best insurance companies, it is important to categorize them according to their product line.
There are number of ways to rank the size of insurance companies.
Companies can be measured by their market capitalization (the value of the company on a stock exchange) or by using sales figures, such as net premiums written in a year or how many policies were sold.
- Largest Insurance Companies by Market Capitalization:
Market capitalization is the total value of a company’s stock, and it is calculated by multiplying the number of outstanding shares by the current share price. It is a quick way of determining the value of a company in the eyes of investors.
Companies with large market capitalization are generally established conservative investments.
They are likely to experience steady growth and offer the least amount of risk. Mid-capitalization companies are also established but have high growth potential.
Lastly, small-capitalization companies are often new companies with high growth potential.
Investing in these companies poses the greatest risk because they are more vulnerable to economic downturns than the more established large and mid-capitalization companies.
Not all insurance companies are publicly traded. In fact, many insurers are structured as mutual companies, where policy holders of participating policies are essentially partial owners of the company.
The mutual company model for an insurance company dates back hundreds of years, and there are certain benefits conferred on policyholders that do not exist with publicly traded (stock company) insurers.
- Largest Insurance Companies by Sales and Product Line:
It is useful to differentiate between the type of insurance that is being considered when considering the largest insurance companies. 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.
Property & Casualty
Property and casualty insurers write policies covering property such as real estate, dwellings, cars, and other vehicles.
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.
What Are the Largest Homeowners Insurance Companies in the U.S?
The five largest homeowners insurance companies in the U.S. are:
- State Farm
- Liberty Mutual
These companies hold more than 45% of the Homeowner insurance market share.
What Are the Largest Insurance Companies in Canada?
The five largest insurance companies in Canada are
- Manulife Financial Corporation
- Great-West Lifeco
- Sun Life Financial
- Fairfax Financial.9
Manulife is Canada’s largest insurance company, employing over 35,000 employees and serving more than 30 million customers.
Ranking the best insurance companies can be done in a number of ways.
Sales of publicly traded companies can be bought to help build a well-diversified investment portfolio that has exposure to the financial and healthcare sectors.
Identifying which types of insurance a company primarily deals with helps determine which firms are competitors and which really are not.
Looking at sales figures, or premiums collected in a year, one can also see how public companies stack up against privately held or mutual companies which make up a large segment of the industry
There are different insurances:
So choose wisely.
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