The Forbes Global 2000 rankings are based on comprehensive scores measured by weights such as income, earnings, assets, and market value. Among the 25 largest insurance companies in the world, the United States ranks first with 6 insurance companies and China ranks second with 4 insurance companies.
The UK and Germany have three insurance companies in the top 25 insurance companies, while Japan, Hong Kong, Switzerland and Taiwan have two each. Canada, France, Italy and Germany each have one seat. The 2021 listed companies have total revenues of US $ 31.5 trillion, profits of US $ 1.7 trillion, assets of US $ 24.3 trillion, and a total market value of 27.2 trillions of US dollars.
China Ping An Insurance Group ranked first on this year’s list, moving up one spot to sixth. In the 12 months ending April 16, when it collected data on the world’s top 2000, Ping An generated $ 169 billion in revenue, $ 20.7 billion in profit, and its market capitalization was $ 211 billion. . This technology-driven company had 218 million customers at the end of 2020, a 9% increase from the beginning of the year.
Second among insurance companies is UnitedHealth Group based in the United States, which rose three places to 21st overall. Its sales were US $ 262 billion and profits were US $ 16.8 billion. Its share price has risen 41% in the last year and its current market value has reached $ 388 billion.
Allianz Germany is ranked 24th in the world’s top 2000, moving up one place. Among the top 100, insurance companies include China Life at 49th, AXA at 54, Hong Kong AIA at 55, New York MetLife at 62, Zurich Insurance Group at 75, Japan Post Holdings at 87, and Manulife Canada (93rd).
While the global economy has increased insurable activities, it also faces significant risks from unforeseen events, such as business closures caused by the pandemic. In this quiet industry, the world’s largest company is also facing major disruption.
For example, climate change is a growing risk that all property insurance companies should consider. A recent study by consulting firm McKinsey estimated that by 2020, climate-induced disasters may increase from about 2% of global GDP to more than 4% of global GDP, doubling in less than 30 years.
As Tesla, General Motors, Intel, and a host of listed startups continue to invest in autonomous vehicle technology, the potential impact on the auto insurance industry is enormous. Auto insurance companies like Allstate, ranked 151st in the world’s top 2000, are actively researching autonomous vehicles and how they will affect the outlook for decades to come.
Insurance companies may also face larger claims from the pandemic in the future. Covid19 business interruption losses are estimated to result in insurable claims of more than $100 billion; however, these losses have not yet occurred. However, companies may require more certainty to report unforeseen economic disruptions caused by the pandemic.
The macroeconomic environment is also a challenge. The era of low interest rates reduced the profitability of insurance companies’ fixed-income investment portfolios, resulting in stagnant investment returns, and industry leaders conducted major restructuring.
In order to manage investment portfolios in a world of low interest rates, large alternative asset management companies entered the market and created huge businesses. In recent years, private equity firms such as Apollo, Blackstone, KKR and Brookfield have entered the insurance market with the goal of managing insurance assets that can reach trillions of dollars and moving investment portfolios from corporate and government bonds to credit. more complex structured. and loans.