Top 3 Insurance Companies In The World…
The insurance industry has a strong presence on the Forbes Global 2000 list of the world’s largest public companies. The list ranks 2,000 companies based on a composite score that takes into account each firm’s revenue, profit, and assets, as well as their market value.
In the 2022 rankings, 105 insurers made it into the top 100, while 11 secured spots in the top 20, and the rest of the world’s top 20 insurance giants placed at least 220th.
American firms dominate the list with six representatives, while China has three representatives, Switzerland, Germany, Japan, and France each have two representatives, and Canada and Italy each have one representative.
Altogether, these insurance giants have a market value of nearly $1.7 trillion and total revenue and profit of nearly $140 billion, although combined sales decreased by about 23% from the previous year. Profits increased by almost the same percentage, to $113.6.
Insurers dip in rankings
In 2022, almost all insurers in the top 20 saw a decline in their rankings. Ping An, a Chinese industry giant, dropped from the sixth spot in 2022 to 17th in 2022. However, the Shenzhen-based firm remained the top insurer.
UnitedHealth Group, the second placer, fell two spots to number 22, while the current third placer, Munich-based insurer Allianz, dropped 12 spots to number 35.
Other prominent industry players, Aviva, Progressive Legal & General, as well as Cathay Life, dropped out of the Forbes Global 2000 rankings after having placed among the top firms in 2021.
However, three of the world’s 20 largest insurance companies, AXA Group (AXA), Chubb, and AIG, rose in the rankings. AIG had the most significant improvement, moving up from 439th in 2022 to 90th in 2022, allowing it to break into the top 10 of the industry.
Here are the top 3 insurance companies in the world:
1. Ping An Insurance Group
Head office: Shenzhen, China
Global ranking: 17th
Business lines: Life and non-life
Revenue: $181.37 billion
Net profit: $15.74 billion
Assets: $1.587 trillion
Market value: $121.69 billion
2021 global ranking: 6th
Despite its difficulties compared to its American and European peers, Ping An maintained its position as the top insurer in the Global 2000, despite a 29% drop in its net profit in 2021 to $15,7 billion, as it booked an impairment charge of $6,4 billion on its China Fortune Land Development investments, one of several indebted Chinese property developers that went bankrupt last year.
According to Forbes’ 2021 annual report, Ping An had $32 billion in real estate assets at the end of 2021, or 5.5 percent of total investment assets. Its real estate exposure has contributed to a 50% decline in its stock since the beginning of the year.
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Forbes called Ping An a “formidable cash cow” due to its increased revenue and customer base, which grew to 227 million in 2021 from 218 million the year before.
2. UnitedHealth Group
Head office: Minnesota, USA
Global ranking: 22nd
Business lines: Life and health
Revenue: $297.55 billion
Net profit: $17.45 billion
Assets: $221.24 billion
Market value: $490.15 billion
2021 global ranking: 20th
United Health Group topped all U.S. insurers on the list. As a life and health insurer, UnitedHealth also had the seventh-highest annual revenue of all U.S.-based insurers on the Global 2000 list.
Forbes reports that UnitedHealth shares have increased by 25 percent since October 2021, and in March 2021, the company agreed to purchase home healthcare company LHC Group from private equity firm Aptera Capital. LHC Group was valued at $5.3 billion.
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Head office: Munich, Germany
Global ranking: 35th
Business lines: Life and non-life
Revenue: $138.62 billion
Net profit: $7.81 billion
Assets: $1.324 trillion
Market value: $96.42 billion
2021 global ranking: 23rd
Allianz holds the second-largest asset value among the insurers on the world list. While the company’s ranking dropped significantly from the previous year, Allianz’s revenue increased by nearly 7% to nearly $130 billion, while profits remained stable.
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Allianz provides insurance, reinsurance, property and casualty insurance, life insurance, credit insurance, travel insurance, and asset management services through several brands and subsidiaries, serving over 126 million clients in more than 70 countries.