The US insurance companies are among the largest and most competitive in the world. The ultimate goal of these companies is to provide their customers with peace of mind and assurance that if something goes wrong, their insurance will cover them.
However, due to the competitive nature of the insurance industry, there are numerous ways to rank the size of insurance companies. such as property, casualty or total market capital.
Before you choose an insurance company, you need to have an in-depth knowledge of the mode of operation; this will help you get started on a good note.
What Exactly Is Insurance?
Insurance is a fairly simple notion. You pay the insurance company a monthly or yearly charge to insure your life, health, vehicle, and property for a set period of time. In exchange, the insurer covers any financial damage caused to the insured person or thing.
Largest insurance companies’ criteria
There are many different factors that go into the criteria for the largest insurance companies in the USA. Some of these factors include:
- Revenue
- Market capitalization
- Number of employees
Revenue
The revenue is calculated by multiplying the net premiums written by the total number of policies.
Market capitalization
Market capitalization is calculated by multiplying shares outstanding with price per share and dividing it by market value.
Number of employees
The number of employees is a measure of how much labour input a company has to produce its goods or services and provide customer service.
Top 15 largest US insurance companies
This section will talk about what are some of the largest insurance companies in the United States and their rankings Some of these top 15 US largest insurance companies include:
- State Farm
- Anthem, Inc
- Liberty Mutual Insurance.
- Prudential Financial.
- Berkshire Hathaway Inc.
- American International Group.
- Nationwide Mutual Insurance.
- Allstate.
- New York Life Insurance Company.
- Progressive.
- MetLife.
- United Services Automobile Association (USAA).
- The Travellers Companies, Inc.
- Nationwide Mutual Insurance.
- Farmers Insurance Group.
Let’s give some basic details of the above insurance company.
#1. State Farm
This is the largest insurance company in the United States, with a 16% market share. State Farm also receives more than 15% of all private passenger auto premium dollars in the United States.
Currently, the company employs approximately 60,000 people and has nearly 19,000 agents. State Farm is a mutual insurance company, which means that its policyholders own it.
Furthermore, Among the largest and most widely available car insurers on this list, State Farm provided the cheapest car insurance rates in the majority of the United States.
#2. Anthem, Inc
Anthem Inc. has a much shorter history than the other insurance companies on this list. During that time, they’ve grown to become the Blue Cross Shield Association’s largest for-profit managed health care company.
In addition, Anthem Inc. currently serves an estimated 40 million people in the United States. With this massive network comes the position of 29th on the Fortune 500 list.
#3. Liberty Mutual
Liberty Mutual has been in business for over 100 years and is one of the largest insurance companies in the United States. It has a significant international presence, operating in 17 countries. The company sells property and casualty insurance, as well as health and life insurance policies.
Liberty Mutual auto insurance can be obtained through the company’s call centre, website, a local Liberty Mutual agent or broker, or representatives from its network of regional subsidiaries. One thing to keep in mind about Liberty Mutual’s coverage is that rates are guaranteed for a year.
#4. Prudential Financial, Inc.
Prudential Financial, Inc. is a Fortune Global 500 and Fortune 500 company whose subsidiaries offer insurance, retirement planning, investment management, and other products and services to retail and institutional customers in the United States and over 40 other countries.
#5. Berkshire Hathaway Inc.
The company is led by the famously profitable investor, Warren Buffet. Berkshire Hathaway Inc. is the largest insurance company in the United States because it owns and controls one of the market’s most successful insurance providers,
in addition, Berkshire Hathaway’s insurance businesses primarily insure and reinsure property and casualty risks in the United States.
Berkshire’s insurance businesses also include life, accident, and health reinsurers, as well as internationally based property and casualty reinsurers, Berkshire Hathaway’s insurance companies have exceptional capital strength.
#6. American International Group, Inc
American International Group, Inc. (AIG) is a multinational finance and insurance corporation based in the United States with operations in over 80 countries. General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary are the company’s three core businesses.
General Insurance includes Commercial, Personal Insurance, U.S. and International field operations. Group Retirement, Individual Retirement, and Life Insurance are all part of Life & Retirement.
#7. Nationwide Mutual Insurance
There are numerous companies affiliated with the Nationwide Mutual Insurance Company family. The parent brand includes well over 50 subsidiaries with similar names.
Nationwide promotes their company’s purpose as simple: to provide their customers with the best insurance products and services possible. Because of their corporation’s integrity and respect for their clients, they demonstrate themselves as one of the best insurance providers.
#8. Allstate
Most people are familiar with Allstate’s catchy slogan, which begs the question, “Are you in good hands?”
It’s a phrase that makes their customers feel safe and secure, which may explain why they’re the largest publicly traded personal lines insurer in the United States.
#9. New York Life Insurance Company.
More than just its insurance offerings, New York Life Insurance Group is well-known. Asset management accounts for a significant portion of their revenue. Currently, the company manages more than $500 billion, which 23,000 qualified financial specialists oversee.
New York Life Insurance Group is the largest mutual life insurance company in the United States as of 2019. A mutual life insurance company is one that is entirely owned by the policyholders it represents.
#10. Progressive.
Progressive Corporation, one of the largest American auto insurance providers, made a name for itself when it became the first company to offer 24/7 claims reporting.
It was also the first car insurance company to allow customers to buy policies online. Progressive currently maintains approximately 13 million policies.
#11. MetLife
MetLife’s insurance services are available in 60 countries worldwide, in addition to the United States. They are a global leader in providing health insurance, annuities, and employee benefits, with 90 million customers worldwide.
MetLife is the fourth-largest insurance company due to its international impact and broad range of services.
#12. United Services Automobile Association (USAA).
It was founded nearly a century ago by 25 United States Army officers. They banded together to seek mutual self-insurance because they all were considered a high-risk group by most insurance companies.
This original group founded a company that would go on to insure millions of Americans who served in the United States Armed Forces and their families. The insurance company now has approximately 13 million customers.
#13. The Travellers Companies Inc.
It has also been a component of the Dow Jones Industrial Average for the past 12 years. Travellers have locations in every state in the United States, as well as additional locations in other countries. Travellers Companies Inc. has been named to the Fortune 500 and World’s Most Admired Companies lists for the past 20 years. With a 2019 annual revenue of more than $30 billion, it doesn’t appear that this will change anytime soon.
#14. The Hartford Financial Services Group
The Hartford Financial Services Group, named after the city in which it was founded, handles investments and insurance for individuals and businesses. The company’s annual revenue is split evenly between its ventures in these two industries.
The Hartford Financial Services Group is one of the largest property and casualty insurance companies in the United States.
#15. Farmers Insurance Group
Farmers Insurance Group, despite its name, is not a company that exclusively provides protection services for farmers. They are a standard insurance company that provides coverage for automobiles, homes, and small businesses.
The company currently employs 21,000 full-time employees and 48,000 independent agents.
You can also read on How Much Is a Car Insurance?
Top health insurance companies USA
There are numerous health insurance companies in the United States; here are the top health insurance companies.
- United Health
- Kaiser Foundation
- Centene Corp
- Humana
- CVS
- Health Care Service Corporation (HCSC),
- Cigna Health
- Molina Healthcare, Inc.
- Independence Health Group
Conclusion
There are several criteria for ranking the largest insurance companies. Companies can be measured by their market capitalization (the value of the company on a stock exchange) or by sales figures such as net premiums written in a year or the number of policies sold. It is important to note that the information presented above is without regard for any specific investor’s investment objectives, risk tolerance, or financial circumstances, and may not be suitable for all investors.
FAQs on The Top 15 US Largest Insurance Companies
The top 10 insurance companies in USA are
#1. State Farm
#2. Anthem, Inc
#3. Liberty Mutual
#4. Prudential Financial.
#5.Berkshire Hathaway Inc.
#6. American International Group.
#7. Nationwide Mutual Insurance.
#8. Allstate.
#9. New York Life Insurance Company.
#10. Progressive.
The following are the 3 largest insurance companies based on market share criteria
#1. State Farm
Direct Premiums Written: $64.8 billion
Market Share: 10.1%
2. Anthem, Inc
Direct Premiums Written: $34.4 billion
Market Share: 5.5%
3. Liberty Mutual
Direct Premiums Written: $33.8 billion
Market Share: 5.3%
Anthem, Inc is the second largest insurance company in the United State , they’ve grown to become the Blue Cross Shield Association’s largest for-profit managed health care company.
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