Insurance is a growing business in the world as lots of people have come to know the importance of insuring their lives, business, car and many other things. People face different kind of risks every day. Risks like an accident, falling sick, being the victim of a natural disaster or fire, and, above all, the risk of life.
All these risks not only come with pain and suffering, but they also because the victim economic and financial hurt. So it is in your best interest to get any area of your life that suffers the most risk insured.
Once you are insured it prepares you for the worst in any situation that may arise out of any unforeseen event. If you are insured when any of this events happen the burden of bearing the loss shifts to the insurance company depending on the contract terms.
The purpose of this article is to look at some of the world’s top insurance companies. There are many criteria on the basis of which such a list can be prepared: premium collections, revenue, profit, geographical area, assets, and more.
Functions of Insurance
1. Insurance provides certainty of payment at the uncertainty of loss. The uncertainty of loss can be reduced by better planning and administration.
In life the only thing that is constant is change. There is uncertainty of happening of time and amount of loss. Insurance removes all these uncertainties and the assured is given certainty of payment of loss.
The insurer charges the premium for providing the said certainty. An assurance that once there is an event causing loss you will be paid a sum to cover the loss.
2. Risk-Sharing. The risk is uncertain, and therefore, the loss arising from the risk is also uncertain. When risk takes place, the loss is shared by all the persons who are exposed to the risk.
The risk-sharing in ancient times was done only at the time of damage or death; but today, based on the probability of risk, (he share is obtained from every insured in the shape of premium without which protection is not guaranteed by the insurer.
3. It Provides Capital. The insurance provides capital to society. The accumulated funds are invested in the productive channel.
The death of the capital of the society is minimized to a greater extent with the help of investment in insurance. The industry, the business, and the individual are benefited by the investment and loans of the insurers.
AIA Group Ltd
AIA Group was founded in 1919 in Singapore and is currently headquartered in Hong Kong. It is the largest pan-Asian life insurance group, with a presence in 18 different markets including China, Australia, New Zealand, India, and Cambodia. It specializes in life insurance and other financial services.
As of Dec. 31, 2019, AIA reportedly had assets of $284 billion and a market cap of $126.2 billion as of February 5, 2020.
AIG, or American International Group, has offices in 80 different countries. The company, founded in Shanghai in 1919, is currently headquartered in New York City. It mainly operates in three segments including general insurance (commercial and personal insurance), life, and retirement, as well as a technology subsidiary called Blackboard Insurance.
You’ll probably recognize the name as one of the companies that received a bailout of $180 billion from the U.S. government following the 2007–2008 financial crisis. According to the Financial Crisis Inquiry Commission, credit default swaps were sold without collateral, causing AIG to fail.
The company has since recovered, reporting $525 billion in assets, and a market cap of $45.2 billion.
Founded in 1890, Allianz is a leading financial services company, providing products and services from insurance to asset management.
Allianz caters to customers in more than 70 countries. Insurance products range from property and casualty products to health and life insurance products for corporate and individual customers.The Company is headquartered in Germany. Allianz’s market cap stands at $104.4 billion.
With over 102 million customers in 56 countries and an employee base of more than 125,000, AXA is one of the world’s leading insurance groups. Its main businesses are property and casualty insurance, life insurance, savings, and asset management. It was founded in 1816 when several insurance companies merged to create AXA. The company is headquartered in Paris but has a presence across Africa, North America, Central, and South America, Asia Pacific, Europe, and the Middle East.
AXA acquired 51% of the insurance operations of Colpatria Seguros in Colombia in 2013. During the same year, it became the largest international insurer operating in China as a result of its 50% acquisition of Tian Ping (a Chinese property and casualty insurer). AXA also acquired the non-life insurance operations of HSBC in Mexico. The market cap for the AXA Group is currently around $67 billion.
China Life Insurance
China Life Insurance (LFC) is one of Mainland China’s largest state-owned insurance and financial services companies, as well as a key player in the Chinese capital market as an institutional investor.
The company was founded in 1949 when the People’s Insurance Company of China (PICC) was formed. Its offshoot PICC (Life) Co. Ltd was created after parting ways with PICC in 1996. PICC (Life) Co. Ltd was renamed as China Life Insurance Company in 1999.
The China Life Insurance Company was restructured in 2003 as China Life Insurance (Group) Company, which has seven subsidiaries. The businesses are spread across life insurance, pension plans, asset management, property and casualty, investment holdings, and overseas operations.
The company is listed on the New York Stock Exchange, the Hong Kong Stock Exchange, and the Shanghai Stock Exchange and is the biggest public life insurance company in terms of market capitalization in the world. The company boasts a market cap of $123.9 billion.
Dutch multinational ING Group was founded in 1991. The company provides a range of services including retail, direct, commercial, and investment banking, insurance, and asset management. ING serves more than 37 million clients in over 40 different countries.
In 2018, ING announced a partnership with another member of this list—AXA. Together, the two have an exclusive, multi-country digital partnership to provide insurance products to clients online through a centralized platform. ING’s market cap is around $47.7 billion.
The UnitedHealth Group (UNH) is among one of the most diversified health care businesses in the United States. Its two business platforms—UnitedHealthcare for health benefits and Optum for health services—work together, serving more than 115 million people in every U.S. state and 125 countries.41 42
The UnitedHealth Group uses its experience and resources in clinical care to improve the performance of the health care services sector.The company’s market cap was $277.5 billion on February 5, 2020.
Serving more than 100 million customers in more than 50 countries, MetLife has a market cap of $47.4 billion and assets of $740.4 billion. It is one of the world’s largest insurers and also provides services in employee benefits and annuities.
The company’s affiliates and subsidiaries include MetLife Investors, MetLife Bank—which was sold to GE Capital in 2013—MetLife Investment Securities, Metropolitan Properties Ventures, and Casualty Insurance Company.