In this article, we will be taking a look at the top 15 insurance companies in USA. To skip our detailed analysis, you can go directly to see the top 5 insurance companies in USA.
The United States is the biggest insurance market in the world by far by premium volume, making up around 40% of the total global premiums written. The history of the insurance industry in the country is vast and rich, with Benjamin Frankling himself also forming a mutual insurance company known as the Philadelphia Contributorship in 1752 and is actually the oldest still operating insurance carrier in the country. There are three types of insurance sectors operating in the United States: property/casualty, life/annuity and private health insurance. Property/casualty insurance deals with insurance pertaining to home, commercial and auto insurance. Meanwhile, life/annuity deals with life insurance in addition to annuity products. However, we’d first like to discuss health insurance in the United States.
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Private health insurance in the United States is extremely interesting; it is the only developed country in the world to not have social healthcare which is where private insurance comes in. In the U.S., healthcare is often tied to employment with employers providing health insurance to their employees rather than the government. Instead of a basic right, health coverage is a privilege or incentive in the country. While there have been attempts to nationalize healthcare in the country, they have not been successful at all. If you are not insured in the U.S., then only luck can help you out in most cases. Hospitals often overbill people significantly and even normal prices in the U.S. for procedures, medicine, surgeries and hospital charges are much higher than in most other countries. Hospitals overcharge so that they can then negotiate with insurers who can make the hospitals reduce their bills. On the other hand, the average uninsured person neither has the time nor the wherewithal to challenge hospitals and are stuck paying incredibly expensive bills which can cripple their financial situation. Of course, there are many companies which earn billions of dollars at the expense of the health of the average person and many of these make our list of the top insurance companies in the U.S. as well.
The property/casualty sector in the insurance industry makes up around 53% of the total premiums underwritten while life/annuity accounted for 47%. Healthcare insurance is incorporated within these two sectors and not measured separately. Net premiums in 2021 were $1.4 trillion according to the Insurance Information Institute while providing employment to more than 2.8 million people, according to the Department of Labor. However, the insurance industry’s outlook isn’t as rosy considering that the world seems to be imminently heading into a recession while inflation is seeing record highs in many countries in 2022. This is leading to challenge of generating profits from underwriting exists in such an economic situation and the requirement of the top insurance companies in the USA needing to adapt the latest technology and overhaul their systems to improve efficiency and cut costs where possible.
There are 74 insurance companies included in the Fortune 500 2022 list. This shows the importance of the industry to the biggest economy in the world, recording $1.84 trillion in revenue in 2021 with profits of around $125 billion. The assets held by these giants are worth around $9.6 trillion providing employment to around 1.5 million people. To determine our ranking for the top insurance companies in the USA, we considered revenue, profits, assets and the number of employees each company has. We assigned 30% weightage to the first two criteria and 20% weightage to the next two. Using multiple criteria allows us to come up with more accurate rankings rather than just ranking a company based on its revenue alone. We also excluded Berkshire Hathaway from our calculation as while it is involved in insurance, it is primarily a financial services and investment company. So, without further ado, let’s take a look at the giants of the insurance industry, starting with number 15:
15. Nationwide Mutual Insurance Company
Total revenue of the company (in millions): 47,376
Total profits of the company (in millions): 1,617
Total assets of the company (in millions): 278,412
Total employees of the company: 24,134
Nationwide Mutual Insurance Company comprises of several insurance and financial services companies and has headquarters in several major cities in the U.S.
14. Centene Corporation (NYSE:CNC)
Total revenue of the company (in millions): 125,982
Total profits of the company (in millions): 1,347
Total assets of the company (in millions): 78,375
Total employees of the company: 72,500
Centene Corporation (NYSE:CNC) acts as an intermediary between privately insured healthcare programs and government sponsored healthcare programs. Centene Corporation (NYSE:CNC) is involved in multiple business segments including Tricare, Medicare, ACA health insurance marketplace and correctional healthcare. Centene Corporation’s (NYSE:CNC) CEO was the highest paid executive in the healthcare industry in 2021, earning close to $25 million.
13. The Allstate Corporation (NYSE:ALL)
Total revenue of the company (in millions): 53,228
Total profits of the company (in millions): 1,599
Total assets of the company (in millions): 99,440
Total employees of the company: 54,500
The Allstate Corporation (NYSE:ALL) is an American insurance company and among the top insurance companies in the USA. The Allstate Corporation (NYSE:ALL) provides various types of insurance including renters, motorcycle, life, auto and home among others.
12. The Travelers Companies, Inc. (NYSE:TRV)
Total revenue of the company (in millions): 34,816
Total profits of the company (in millions): 3,662
Total assets of the company (in millions): 120,466
Total employees of the company: 30,492
The Travelers Companies, Inc. (NYSE:TRV) is the second-biggest commercial property casualty insurer in the U.S. The Travelers Companies, Inc. (NYSE:TRV) is also among the top 10 personal insurance providers through independent agents. The Travelers Companies, Inc. (NYSE:TRV) has offices in every U.S. state in addition to several countries including Singapore, Brazil, China, Ireland, Canada and the United Kingdom.
11. The Progressive Corporation (NYSE:PGR)
Total revenue of the company (in millions): 47,702
Total profits of the company (in millions): 3,351
Total assets of the company (in millions): 71,132
Total employees of the company: 49,077
The Progressive Corporation (NYSE:PGR) is the biggest auto insurer in the country in addition to being among the largest insurance carriers. The Progressive Corporation (NYSE:PGR) provides insurance for various kinds of vehicles including cars, boats, trailers, RVs and motorcycles among others.
10. State Farm Insurance
Total revenue of the company (in millions): 82,225
Total profits of the company (in millions): 1,281
Total assets of the company (in millions): 325,349
Total employees of the company: 53,586
State Farm Insurance is comprised of several mutual insurance companies and was established just over a century ago.
9. Humana Inc. (NYSE:HUM)
Total revenue of the company (in millions): 83,064
Total profits of the company (in millions): 2,933
Total assets of the company (in millions): 44,358
Total employees of the company: 95,500
Humana Inc. (NYSE:HUM) is headquartered in Kentucky and is one of the top insurance companies in USA. Humana Inc. (NYSE:HUM) filed a lawsuit in 2019 against 37 defendants, alleging that they blatantly fixed the price of generic drugs. Humana Inc. (NYSE:HUM) is among the top 100 U.S. government contractors.
8. USAA
Total revenue of the company (in millions): 37,470
Total profits of the company (in millions): 3,300
Total assets of the company (in millions): 210,677
Total employees of the company: 37,335
USAA refers to the United Services Automobile Association, an organization which includes reciprocal inter-insurance exchange and currently has at least 13 million members. The company was founded by 25 U.S. Army officers.
7. Liberty Mutual Insurance Group
Total revenue of the company (in millions): 48,200
Total profits of the company (in millions): 3,068
Total assets of the company (in millions): 156,043
Total employees of the company: 45,000
One of the biggest property and casualty insurers in the USA, Liberty Mutual Insurance Group provides various kinds of products including automobile insurance, workers’ compensation, homeowner insurance, fire insurance and surety among various others.
6. TIAA
Total revenue of the company (in millions): 40,526
Total profits of the company (in millions): 4,061
Total assets of the company (in millions): 698,191
Total employees of the company: 15,065
The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund provides insurance in addition to finance services in various fields. It has more than 5 million members and serves around 15,000 institutions.
Click to continue reading and see the top 5 insurance companies in USA.
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Disclosure: None. Top 15 insurance companies in USA is originally published at Insider Monkey.
