In this article we are going to list the 12 Most Valuable Insurance Companies In The World. Click to skip ahead and jump to the 5 Most Valuable Insurance Companies In The World.
Despite the negative stigma attached to it, insurance remains one of the most important industries in the world. Its importance comes to light in case of loss of life, fire, loss of real estate, natural disasters and health problems. Insurance companies charge premiums to their customers on a monthly basis, which is based on the level of risk that the insurance company calculates on different policies. The higher the risk, the greater the premium, which is why customers try to ensure that their risk remains reasonable so that they aren’t charged exorbitant premiums. These premiums are used by insurance companies as methods of investment, which in turn helps to generate financial resources for the economy at large. Individuals and businesses use insurance services to spread or transfer the risk from the customer to the insurance company. The customer meanwhile simply has to keep paying the premiums. It is important to note that nowadays, insurance is incredibly common in most countries and is often even required by law.
Insurance companies play a key role in the U.S. in the healthcare industry. There have been massive debates about the questionable clout of insurance companies and the plight of common people who are unable to pay their hefty medical bills. So far, governments have failed to break the dominance of insurance companies in the U.S. Healthcare in the United States is often many times more expensive than in most nations in the world. Even after insurance, people have to pay out of pocket for some expenses, which can be quite expensive as well, but for the uninsured who have no knowledge of the unchecked overcharging by hospitals and no power to fight it, a medical emergency often means a huge toll on savings.
Even though the insurance industry has faced uncertainty and major losses because of the pandemic, the most valuable insurance companies in the world have managed to stand strong and have a collective market cap of $1.4 trillion combined. Our rankings of the most valuable insurance companies in the world involve only the public insurance companies. This is why a major company, Nippon Life, which is Japan’s biggest life insurance company, and one of the top insurance companies in the world by assets managed, does not make it to our list. We have taken the market capitalization of each insurance company from Yahoo Finance.
Let’s take a look at the most valuable insurance companies in the world.
12. Legal & General
Total market cap of the company as at April 1, 2021 (in billions of dollars): 16.894
Legal & General sounds like a boring name, but is actually a huge insurance company in the UK, which sold its general insurance business to Allianz in 2020. The company had revenues of more than 50 billion pounds in 2020, while also reporting net income of 1.2 billion pounds.
Total market cap of the company as at April 1, 2021 (in billions of dollars): 22.19
Aviva is another insurer to make it to our list of the most valuable insurance companies in the world. With headquarters in the U.K., the company has at least 31,000 employees and reported revenues of nearly 47 billion pounds in 2020, though this was a decrease from 2019 numbers, mainly due to the pandemic. The company however managed to improve operational efficiency and saw an increase in net income.
10. Assicurazioni Generali
Total market cap of the company as at April 1, 2021 (in billions of dollars): 31.47
The Italian insurance company is one of the largest in the world, and one of the oldest companies in our list as well, having been founded 190 years ago in 1831. Assicurazioni Generali has more than 74,000 employees, which contributed to its total revenues of more than 94 billion euros in 2019 while its net income was worth 2.67 billion euros. The biggest competitors of the company are Axa and Allianz.
9. Prudential Financial (NYSE:PRU)
Total market cap of the company as at April 1, 2021 (in billions of dollars): 36.022
Prudential Financial is an American company, which makes it to the 9th spot in our list of the most valuable insurance companies in the world. The company maintains operations in the U.S. as well as at least 40 other countries, serviced by its more than 50,000 employees. The company was founded 146 years ago in 1875 and is comprised of hundreds of subsidiaries, which hold at least $4 trillion if not more in life insurance. The company recorded revenues of nearly $65 billion in 2019, while its net income amounted to $4.14 billion with total assets worth nearly $900 billion.
8. Manulife Financial (NYSE:MFC)
Total market cap of the company as at April 1, 2021 (in billions of dollars): 41.86
Manulife Financial is a Canadian company which was founded 133 years ago. The current headquarters of the company are in Toronto. The company has more than 34,000 employees in addition to more than 60,000 agents under contract and more than $935 billion in assets under management. The company recorded revenues of close to 40 billion in Canadian dollars, with assets under management excluding $1 trillion, making it one of the few companies in the world with more than $1 trillion in assets under management.
Total market cap of the company as at April 1, 2021 (in billions of dollars): 53.763
MetLife is one of the most valuable insurance companies in the world, and ranks 7th in our list, boasting more than 90 million customers in at least 60 countries all across the world. The American company was founded 153 years ago in 1868 and has leading market positions in various countries including the United States, Latin America, Japan, Europe, the Middle East and Asia Pacific as well.
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6. Prudential plc (NYSE:PUK)
Total market cap of the company as at April 1, 2021 (in billions of dollars): 55.888
Not be confused with the aforementioned Prudential Financial, Prudential plc is an insurance company in the UK and was founded 173 years ago in 1848. The company has at least 20 million life customers and operations in at least 14 countries, with revenues of more than $55 billion in 2020 and more than 23,000 employees as per the latest count. While its revenue fell in 2020 mainly due to the pandemic that has engulfed the world, the company actually reported higher net income than the previous year, at $2.185 billion. The company also engages in financial services.
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Disclosure: None. 15 most valuable insurance companies in the world is originally published at Insider Monkey.