There are a 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. Here, we examine the top 10 largest insurance companies in USA by market cap, market share, and revenues.
The insurance industry in the United States employs more than 2.8 million people across nearly 6,000 companies with net premiums written totaling $1.28 trillion in 2020 according to S&P Global Market Intelligence. Like much of the global economy, the insurance industry in the United States was drastically altered by Covid-19. From increased digitalization to a heightened awareness of mortality, the industry was forced to adapt as firms and their workforces look to serve consumers across a wide breadth of offerings, including auto, homeowners, renters, pet, dental and term and permanent life.
|AAA Insurance||Heathrow, Florida||1902|
|AAA Life Insurance||Livonia, Michigan||1969|
|AKC Pet Insurance||Raleigh, North Carolina||2003|
|Alfa Insurance||Montgomery, Alabama||1946|
|AllCare Health||Grants Pass, Oregon||1994|
|American Family Insurance||Madison, Wisconsin||1927|
|American International Group||New York, New York||1919|
|American Modern Insurance||Amelia, Ohio||1949|
|American National Insurance||Galveston, Texas||1905|
|Amica||Lincoln, Rhode Island||1907|
|Auto-Owners Insurance||Lansing, Michigan||1916|
|Blue Cross Blue Shield of Alabama||Birmingham, Alabama||1936|
|Blue Cross Blue Shield of Illinois||Chicago, Illinois||1936|
|BlueCross BlueShield of South Carolina||Columbia, South Carolina||1946|
|Blue Cross and Blue Shield of Texas||Richardson, Texas||1929|
|BlueCross and BlueShield of Kansas City||Kansas City, Missouri||1938|
|BlueCross BlueShield of Tennessee||Chattanooga, Tennessee||1945|
|Capital Blue Cross||Harrisburg, Pennsylvania||1938|
Largest Insurance Companies by Market Capitalization
Market capitalization, or market cap, 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 caps are generally established conservative investments. They likely experience steady growth and offer the least amount of risk. Mid-cap companies are also established but have high growth potential. Lastly, small-cap 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-cap companies.
The top 10 USA property and casualty insurance companies in 2020 by net premiums written:
|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|
In order to determine which companies qualify as America’s Best Insurance Companies Forbes partnered with Statista to survey more than 16,000 customers and get their feedback on insurance company performance across eight metrics including overall satisfaction and whether they would recommend them to family and friends. We also evaluated five different subdimensions including: financial advice; customer service; price/performance ratio; transparency; and damage/benefit ratio. Out of some 4,200 insurance companies that offer either property and casualty coverage, life and annuity coverage or health insurance, only 90 were awarded.
Are the Large Insurance Companies Good Investments?
Investing in insurance companies can be a safe option for some investors. Insurance companies are founded to deal with risk, which can ultimately reduce the risks associated with investing in them. Health insurance, subject to rapid changes, has the potential for significant growth compared to other types of insurance companies.
Who Are the Largest Investors in Insurance Companies?
The largest investors in insurance companies are generally other institutions. For example, UnitedHealth Group (UNH) has 4,124 institutional owners, who hold more than one billion shares.
What Are the Largest Homeowners Insurance Companies in the U.S.?
The five largest homeowners insurance companies in the U.S. are State Farm, Allstate, USAA, Liberty Mutual, and Farmers. Together, these companies hold more than 45% of the homeowners’ insurance market share.