INTRODUCTION TO IN INSURANCE COMPANIES IN USA
This article delves into the 20 largest health insurance companies in USA.
The healthcare sector is a significant industry in the United States, representing nearly 20% of the nation’s GDP.
According to the Centers for Medicare & Medicaid Services, this industry is projected to experience an average growth rate of 5.1% from 2021 to 2030, reaching a total value of approximately $7 trillion.
It is interesting to note that South Dakota has the highest healthcare costs per person, amounting to $11,736, whereas New Mexico has the lowest recorded costs.
Given the exorbitant healthcare expenses, nearly all US citizens have sought health insurance as a protective measure.
Recent figures indicate that approximately 92% of the US population will be insured through either public or private health insurance plans in 2021.
Interestingly, the insured population in the US grew by nearly 900,000 individuals between 2020 and 2021.
According to the research conducted by Grand View Research, the US health insurance market was valued at around $1.6 trillion in 2022, and it is projected to experience a compound annual growth rate of 6.08% from 2023 to 2030.
Health Insurance Industry Development
The cost of health insurance premiums remained stagnant for a period of four years until 2022. However, in 2023, there was a median increase of 4% for the lowest-priced silver plan.
A survey indicates that global healthcare benefit costs are expected to reach their highest point in 15 years in 2023, with estimates suggesting a 10% increase.
On June 14, UnitedHealth Group Incorporated (NYSE: UNH), the largest health insurance company globally, reported an increase in costs due to a rise in surgeries among older adults, particularly knee and hip procedures.
This news led to a decline in the company’s stock, as well as a few other Medicare-focused insurers.
Executives at UnitedHealth Group Incorporated (NYSE: UNH) stated that now that the pandemic has subsided, older individuals over the age of 65 are opting for procedures they had previously postponed.
However, since the initial announcement by UnitedHealth Group Incorporated (NYSE: UNH), its stock has rebounded by over 3.7%, as noted by Wells Fargo analysts on June 16.
UBS Group AG (NYSE: UBS) predicts that health insurance costs could rise by $250 million to $500 million in 2023 alone due to injuries related to the sport of pickleball.
Pickleball is currently the fastest-growing sport in the United States, with the number of players increasing from 4.8 million in 2021 to 22.3 million.
As of June 28, the three largest health insurance companies in the US are UnitedHealth Group Incorporated (NYSE: UNH), Elevance Health, Inc. (NYSE: ELV), and The Cigna Group (NYSE: CI).
Methodology Used
These companies were selected based on their market capitalization and organized in descending order accordingly.
We excluded companies that solely specialized in reinsurance or did not have substantial operations within the health insurance sector.
It is worth noting that all of these companies have considerable operations in the United States. Although some may have their headquarters located outside of the US, they are still active in the country.
BEST 20 INSURANCE COMPANIES IN THE USA 2024
1. UnitedHealth Group Incorporated (NYSE: UNH)
Market Capitalization: $449.27 billion
UnitedHealth Group Incorporated (NYSE: UNH) is a healthcare company headquartered in Minnesota. With the largest market capitalization among insurance companies worldwide, it holds a prestigious position in the industry.
The first quarter of 2023 saw significant interest from hedge funds, with 116 of them holding a stake valued at $11.708 billion.
This marked an increase in hedge fund sentiment compared to the previous quarter, where 110 funds held a stake worth $11.46 billion.
2. Elevance Health, Inc. (NYSE:ELV)
Market Capitalization: $105.37 billion
Elevance Health, Inc. (NYSE: ELV), formerly known as Anthem, Inc., is a leading American company specializing in managed healthcare and health insurance.
The company has gained significant favor among Wall Street analysts, attracting attention for its promising performance.
Over the past three months, 14 analysts have thoroughly assessed Elevance Health, Inc. (NYSE: ELV), and unanimously maintained a positive outlook, assigning either a Buy or Overweight rating to the company’s stock.
With an average price target of $567.07, it is evident why Elevance Health, Inc. (NYSE: ELV) stands out as one of our top recommendations for long-term growth.
3. The Cigna Group (NYSE:CI)
Market Capitalization: $81.6 billion
The Cigna Group (NYSE: CI) is an American healthcare company that specializes in providing managed healthcare and health insurance services.
It ranks fourth on our list of the largest health insurance companies in the US, boasting a market capitalization of $81.78 billion.
With an extensive customer base of approximately 165 million individuals across 30 countries, Cigna Group (NYSE: CI) exhibits a strong global presence.
In addition to medical insurance, dental, and accident insurance, The Cigna Group (NYSE: CI) offers various insurance services.
They also prioritize customer convenience by providing digital ID cards and app services.
4. Chubb Limited (NYSE:CB)
Market Capitalization: $81.6 billion
Chubb Limited (NYSE: CB) is an insurance and reinsurance company based in Switzerland. Operating worldwide, including the United States, it holds the position of the fourth-largest health insurance company in the US.
At the time of writing, Chubb Limited (NYSE: CB) boasts a market capitalization of $78.58 billion. In the first quarter of 2023, 45 hedge funds held shares in Chubb Limited (NYSE: CB).
Among these funds, Viking Global had the most significant stake, owning 3.466 million shares valued at $673.17 million.
5. Humana Inc. (NYSE: HUM)
Market Capitalization: $78.58 billion
Chubb Limited is a globally-operating insurance and reinsurance company headquartered in Switzerland.
It is a prominent player in the health insurance sector in the United States, currently ranked as the fourth-largest company in terms of market capitalization which stands at $78.58 billion.
Notably, Chubb Limited’s shares were held by 45 hedge funds during the initial quarter of 2023. Among these funds, Viking Global emerged as the leading investor, holding 3.466 million shares valued at $673.17 million.
6. MetLife, Inc. (NYSE: MET)
Market Capitalization: $42.10 billion
MetLife, Inc. is a globally recognized insurance company (NYSE: MET) that specializes in offering a wide range of products, including insurance, annuities, and employee benefit programs.
With a vast customer base of over 90 million individuals spanning across 60 countries, MetLife, Inc. holds a prominent position in the global insurance industry.
Their comprehensive health coverage encompasses various areas such as life, medical, accident, dental, vision insurance, and disability coverage.
In a recent development on June 14, MetLife, Inc. forged a partnership with Lyra Health to enhance their employee benefits package by providing mental health services following the submission of disability or absence claims.
When it comes to the United States healthcare industry, MetLife, Inc. (NYSE: MET) secures the sixth position.
Meanwhile, the top three healthcare companies in the US are UnitedHealth Group Incorporated (NYSE: UNH), Elevance Health, Inc. (NYSE: ELV), and The Cigna Group (NYSE: CI).
7. American International Group, Inc. (NYSE:AIG)
Market Capitalization: $40.85 billion
American International Group, Inc. (NYSE: AIG) is a renowned finance and insurance corporation headquartered in New York.
Offering a diverse portfolio of insurance products, including general, health, travel, vehicle, and life insurance, among others, AIG caters to various customer needs.
In addition to insurance, AIG also engages in investment management and provides mortgage loans.
During the initial quarter of 2021, a total of 46 hedge funds held shares in American International Group, Inc. (NYSE: AIG), amassing a combined stake value that neared $2 billion.
8. Centene Corporation (NYSE:CNC)
Market Capitalization: $36.51 billion
Centene Corporation (NYSE: CNC) is a managed care company headquartered in Missouri.
It specializes in managing Medicare and Medicaid programs and assisting TRICARE beneficiaries in the western region of the United States.
Additionally, Centene Corporation (NY: CNC) offers privately insured healthcare programs to its clients.
As part of its strategic moves, the company decided to withdraw from the pharmacy benefit management business in May 2022.
This involved divesting its subsidiaries, Magellan Rx and PANTHERx Rare, for a combined valuation of $2.8 billion.
9. Sun Life Financial Inc. (NYSE:SLF)
Market Capitalization: $30.14 billion
Sun Life Financial Inc. (NYSE: SLF) is a Canadian insurance provider that dates back to 1865, offering a diverse range of insurance policies, including dental, disability, health, and life insurance.
The company also provides asset management, pension plans, and various financial services, mainly catering to clients in North America and Asia.
Sun Life Financial Inc. (NYSE: SLF) operates its US headquarters out of Norfolk County, Massachusetts.
In a recent development, Sun Life Financial Inc. (NYSE: SLF) made an important acquisition on June 1, 2022, by purchasing DentaQuest, one of the largest providers of Medicaid dental benefits in the United States, for $2.475 billion.
10. The Allstate Corporation (NYSE:ALL)
Market Capitalization: $28.55 billion
The Allstate Corporation (NYSE: ALL) is an insurance company headquartered in Illinois, boasting a market capitalization of $28.55 billion.
Within the US, it ranks as the tenth largest health insurance provider. Allstate offers a wide range of insurance options, including health coverage.
Its health insurance offerings encompass various plans such as short-term medical, critical illness, accident, dental, and Medicare insurance.
Additionally, the Allstate Corporation (NYSE: ALL) provides self-funded group health plans and supplemental health coverage designed for small to medium-sized businesses.
11. Arch Capital Group Ltd. (NASDAQ:ACGL)
Market Capitalization: $26.5 billion
Arch Capital Group Ltd. (NASDAQ: ACGL) is a prominent insurance corporation based in the United States.
Established in Delaware in 1995, the company’s present headquarters is located in Bermuda.
Arch Capital Group Ltd. (NASDAQ: ACGL) operates across various international markets including Bermuda, the USA, Canada, Europe, Australia, and Hong Kong.
Within the United States, the company offers an extensive range of insurance policies including accident, disability scholastic, travel, property, health, and management liability coverage.
12. Principal Financial Group, Inc. (NASDAQ:PFG)
Market Capitalization: $18.08 billion
Principal Financial Group, Inc. (NASDAQ: PFG) is a renowned American company specializing in global financial services and insurance.
Within the United States, the company offers dental and vision insurance, as well as individual disability insurance.
Established in 1879, Principal Financial Group, Inc. (NASDAQ :PFG) has its headquarters in Iowa.
During the first quarter of 2022, Balyasny Asset Management acquired a substantial stake in Principal Financial Group, Inc. (NASDAQ: PFG).
The investment firm purchased 625,035 shares, valued at $46.45 million, thus becoming the company’s largest stakeholder.
13. W. R. Berkley Corporation (NYSE:WRB)
Market Capitalization: $15.31 billion
W. R. Berkley Corporation (NYSE: WRB) operates as a leading commercial insurance and reinsurance company.
Within its range of insurance offerings, the company caters to the healthcare industry, providing insurance products specifically designed for healthcare businesses such as hospitals, nursing homes, and managed healthcare facilities.
Additionally, W. R. Berkley Corporation (NY :WRB) has gained recognition as one of the top property and casualty insurance stocks to consider for investment.
14. Globe Life Inc. (NYSE:GL)
Market Capitalization: $10.34 billion
Globe Life Inc. (NYSE: GL) is a financial services company headquartered in Texas, offering a diverse range of insurance coverage options.
Among its products, the company specializes in supplemental health insurance, providing various plans such as cancer insurance, ICU insurance, critical illness coverage, and hospital insurance.
Notably, Globe Life Inc. (NYSE: GL) also offers Medicare supplemental insurance plans aimed at covering expenses that Medicare does not include, such as deductibles, co-insurance, co-payments, and cost-sharing for outpatient hospital services.
15. Everest Re Group, Ltd. (NYSE:RE)
Market Capitalization: $14.66 billion
Everest Re Group, Ltd. (NYSE: RE) is an insurance and reinsurance company headquartered in Bermuda.
With a global presence spanning over 100 countries, including the United States, the company offers a comprehensive range of insurance services.
This includes their health insurance segment, which encompasses products such as medical stop loss, short-term medical, pro sports disability, managed care, and group personal accident coverage.
During the first quarter of 2023, Egerton Capital Limited emerged as a significant stakeholder in Everest Re Group, Ltd. (NYSE: RE) among the 41 hedge funds holding a stake.
Egerton Capital Limited held 406,646 shares valued at $145.587 million.
In an important development, Everest Re Group, Ltd. (NYSE: RE) recently declared its decision to rebrand and subsequently change its name and ticker symbol to Everest Group, Ltd. and EG, respectively.
This move aims to signify the company’s evolving identity and further differentiate it in the market.
16. Unum Group (NYSE:UNM)
Market Capitalization: $9.26 billion
Unum Group (NYSE: UNM) is an insurance company based in the United States.
The company boasts an extensive customer base of 39 million individuals across the globe, providing insurance services to approximately 57% of Fortune 100 companies or their affiliated subsidiaries.
A notable subsidiary of Unum Group (NYSE: UNM) is Colonial Life & Accident Insurance Company, which offers a diverse portfolio of insurance coverage including disability, cancer, accident, life, critical illness, and hospital confinement insurance.
Unum Group (NYSE: UNM) acquired Colonial Life & Accident Insurance Company back in 1993 for a sum of $571 million, strengthening its market position and expanding its range of services.
17. Kinsale Capital Group, Inc. (NYSE:KNSL)
Market Capitalization: $8.48 billion
Kinsale Capital Group, Inc. (NYSE: KNSL), an American insurance company, specializes in various insurance services within its Allied Health segment.
This segment caters to long-term care coverage, miscellaneous healthcare, and social service risks.
Additionally, Kinsale Capital Group, Inc. (NY :KNSL) provides a unique insurance marketplace for medical professionals who are unable to obtain coverage through traditional channels.
Its offerings extend to non-traditional healthcare providers such as chiropractors, podiatrists, dentists, physicians, and group practitioners.
Established in 2009, Kinsale Capital Group, Inc. (NYSE:KNSL) is headquartered in Virginia.
18. AXIS Capital Holdings Limited (NYSE:AXS)
Market Capitalization: $4.57 billion
AXIS Capital Holdings Limited (NYSE: AXS) provides an array of insurance and reinsurance solutions, with a particular focus on specialty accident and health insurance.
The company emphasizes that its health and accident insurance offerings are specifically designed for various sectors including sports, leisure, and entertainment, as well as educational institutions, police, and fire departments.
Moreover, AXIS Capital Holdings Limited (NYSE: AXS) has developed customized coverage options to cater to individuals working in the Esports industry.
Operating across multiple regions such as Bermuda, the United States, Canada, Europe, and Singapore, AXIS Capital Holdings Limited (NYSE: AXS) boasts a global presence.
19. GoHealth, Inc. (NASDAQ:GOCO)
Market Capitalization: $4.21 billion
GoHealth, Inc. (GOCO) is a certified insurance exchange authorized by the government.
This company provides a range of Medicare plans, among which are Medicare Advantage and Medigap.
Since its establishment in 2001, GoHealth, Inc. (GOCO) has formed partnerships with more than 300 insurance carriers and successfully enrolled over 5 million individuals across the United States.
In fact, in 2022 alone, the company extended assistance to over 2 million people.
Headquartered in Illinois, GoHealth, Inc. (GOCO) operates not only across multiple states in the US but also maintains an office presence in Slovakia.
20. Kemper Corporation (NYSE:KMPR)
Market Capitalization: $3.15 billion
Kemper Corporation (NYSE: KMPR) is an American insurance company with a broad scope of services, which includes accident and health insurance.
Notably, the company specializes in offering health insurance coverage specifically designed for individuals facing a first-time cancer diagnosis or experiencing a first-occurrence heart attack.
Established in 1990, Kemper Corporation (NYSE: KMPR) is based in Chicago, Illinois.
In addition to Kemper Corporation (NYSE: KMPR), other leading healthcare companies in the United States include UnitedHealth Group Incorporated (NYSE: UNH), Elevance Health, Inc. (NYSE: ELV), and The Cigna Group (NYSE: CI).
These companies play significant roles in the healthcare industry.
