In this blog we are going to get info and do stock analysis of 7 best Insurance companies of USA. You are going to get most of the Stock Analysis covered in this blog so read it fully.
Let’s first see the overall intro to Insurance sector in USA.
Introduction to the Insurance Sector in the USA
The insurance sector is a critical component of the U.S. economy, providing financial protection against risks for individuals, businesses, and institutions. It includes various segments such as health, life, property & casualty, auto, and reinsurance. The industry plays a vital role in economic stability, risk management, and investment funding.
Contribution to GDP
The insurance sector contributes significantly to the U.S. Gross Domestic Product (GDP). According to industry reports:
- Insurance carriers and related activities contribute ~3% of the U.S. GDP.
- The total economic impact is even larger when considering indirect contributions, such as investments made by insurers in various sectors.
Employment & Job Creation
The insurance industry is a major employer in the U.S.:
- Employs over 2.8 million people directly.
- Indirectly supports millions of jobs in finance, healthcare, legal, and technology sectors.
- Careers range from underwriters, actuaries, and claims adjusters to sales agents and financial analysts.
Overall Importance
- Financial Security – Protects businesses and individuals from unexpected financial losses.
- Economic Stability – Encourages investment by reducing financial risks.
- Capital Investment – Insurance companies manage trillions of dollars in assets, investing in real estate, infrastructure, and stock markets.
- Disaster Recovery – Provides payouts during natural disasters, accidents, and health crises, helping in economic recovery.
With a strong regulatory framework and increasing demand for risk coverage, the U.S. insurance industry remains one of the most influential and stable sectors in the global economy.
List of 7 Biggest Insurance Companies in the USA with Market Cap :
Here is a table summarizing the 7 major publicly listed U.S. insurance companies, including their stock ticker symbols, stock prices, market capitalizations, and estimated net profits:
| Company | Ticker | Index Listed | Stock Price (USD) | Market Capitalization (USD) | Net Profit (USD) (Approx.) |
|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | BRK.A | NYSE | 771,250.00 | 1.08 trillion | 14.5 billion (Q4 2024) |
| UnitedHealth Group Inc. | UNH | NYSE | 488.65 | 451 billion | ~5.5 billion (Q4 2024) |
| MetLife Inc. | MET | NYSE | 80.41 | 56 billion | ~2.2 billion (Q4 2024) |
| Prudential Financial Inc. | PRU | NYSE | 108.49 | 38 billion | ~1.8 billion (Q4 2024) |
| The Progressive Corporation | PGR | NYSE | 283.69 | 164 billion | 2.36 billion (Q4 2024) |
| The Travelers Companies Inc. | TRV | NYSE | 260.91 | 58 billion | ~1.4 billion (Q4 2024) |
| Allstate Corporation | ALL | NYSE | 207.49 | 53 billion | ~1.6 billion (Q4 2024) |
Notes:
- Stock Prices are as of March 15, 2025.
- Market Capitalization is based on the latest available data.
- Net Profit figures are estimated based on recent trends and available reports.
These insurance companies are among the most stable and profitable in the U.S., playing a crucial role in financial services, risk management, and economic stability.
Fundamental Stock Analysis of 7 Biggest Insurance companies of USA :
Here’s a comparative table of the 7 major publicly listed U.S. insurance companies, including key financial metrics:
| Company | Debt/Equity | P/E Ratio | P/B Ratio | EPS (USD) | Dividend Yield | ROE (%) | ROA (%) | Piotroski F-Score |
|---|---|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | 0.20 | 12.07 | 1.66 | 61,952 | N/A | 14.65 | 6.39 | 5 |
| UnitedHealth Group Inc. | 0.60 | 22.50 | 5.50 | 21.50 | 1.40% | 25.00 | 8.00 | 7 |
| MetLife Inc. | 0.29 | 8.00 | 0.90 | 10.05 | 3.00% | 11.50 | 1.20 | 6 |
| Prudential Financial Inc. | 0.34 | 9.50 | 0.85 | 11.40 | 4.50% | 9.00 | 0.90 | 5 |
| The Progressive Corporation | 0.33 | 13.50 | 3.10 | 21.00 | 0.40% | 23.00 | 5.00 | 8 |
| The Travelers Companies Inc. | 0.26 | 11.00 | 1.50 | 23.70 | 2.00% | 13.50 | 3.00 | 6 |
| Allstate Corporation | 0.28 | 10.00 | 1.20 | 20.75 | 2.20% | 12.00 | 2.50 | 7 |
Key Analysis:
- Debt/Equity Ratio: All companies maintain conservative debt levels, with ratios below 0.60, indicating prudent financial management.
- P/E Ratio: UnitedHealth Group has the highest P/E ratio at 22.50, suggesting higher growth expectations. In contrast, MetLife’s P/E of 8.00 may indicate undervaluation.
- P/B Ratio: UnitedHealth Group’s P/B ratio of 5.50 reflects strong market valuation relative to its book value, whereas MetLife and Prudential Financial have P/B ratios below 1, potentially signaling undervaluation.
- EPS: Berkshire Hathaway’s EPS is notably high due to its diversified conglomerate structure.
- Dividend Yield: Prudential Financial offers the highest dividend yield at 4.50%, appealing to income-focused investors.
- ROE & ROA: UnitedHealth Group and The Progressive Corporation exhibit robust profitability metrics, with high ROE and ROA figures.
- Piotroski F-Score: The Progressive Corporation leads with a score of 8, indicating strong financial health.
Piotroski Score for Each Insurance Company
| Company | Profitability (4) | Liquidity & Leverage (3) | Efficiency (2) | Total F-Score (Max 9) |
|---|---|---|---|---|
| Berkshire Hathaway Inc. | 3 | 1 | 1 | 5 |
| UnitedHealth Group Inc. | 4 | 2 | 1 | 7 |
| MetLife Inc. | 3 | 2 | 1 | 6 |
| Prudential Financial Inc. | 3 | 1 | 1 | 5 |
| The Progressive Corporation | 4 | 3 | 1 | 8 |
| The Travelers Companies Inc. | 3 | 2 | 1 | 6 |
| Allstate Corporation | 4 | 2 | 1 | 7 |
Piotroski Score Interpretation
- Score 8: The Progressive Corporation has the strongest fundamentals, with positive profitability, improving liquidity, and strong efficiency metrics.
- Score 7: UnitedHealth Group & Allstate Corporation also show solid financial health, but with minor weaknesses in leverage or efficiency.
- Score 6: MetLife & Travelers Companies have moderate financial strength but some concerns in liquidity or profitability.
- Score 5: Berkshire Hathaway & Prudential Financial show moderate financial health, with weaknesses in leverage or efficiency.
Investment Insights from Piotroski Score
- High Piotroski Score (7-9): Progressive, UnitedHealth, and Allstate are financially strong and good long-term investment candidates.
- Moderate Score (5-6): MetLife, Travelers, Berkshire Hathaway, and Prudential are stable but need deeper analysis for specific weaknesses.
- Low Score (0-3): (None in this case) Would indicate high-risk companies with weak fundamentals.
Concluding this article :
Investment Rationale and Credit Ratings of Major U.S. Insurance Companies
Investing in insurance companies requires evaluating their financial stability, market position, innovation, and future growth potential. Below is an overview of why these companies are good investments, followed by their credit ratings and an analysis of their bullish or bearish outlook.
Why These Insurance Companies Are Good Investments
| Company | Reasons to Invest |
|---|---|
| Berkshire Hathaway Inc. | – Diversified Portfolio: Investments in multiple industries help reduce risk. – Strong Cash Reserves: The company holds significant cash reserves, ensuring financial flexibility. – Smart Capital Allocation: Led by Warren Buffett, known for making high-return investments. |
| UnitedHealth Group Inc. | – Market Leader: Largest U.S. health insurance company with growing revenue. – Expanding Services: Increasing presence in healthcare services and technology. – Strong Profit Margins: Consistently generates high earnings. |
| MetLife Inc. | – Global Presence: Operates in over 40 countries, reducing dependency on any single market. – Growing Digital Initiatives: Enhancing customer experience through technology. – Steady Dividend Payouts: Offers consistent returns to shareholders. |
| Prudential Financial Inc. | – Well-Diversified Business Model: Includes insurance, asset management, and retirement services. – Strong Brand Recognition: Trusted name in the financial sector. – Focus on International Growth: Expanding in Asian and Latin American markets. |
| The Progressive Corporation | – Technology-Driven Growth: Leader in digital insurance policies and AI-driven risk assessment. – Consistently Growing Market Share: Strong position in auto insurance. – Efficient Cost Management: Maintains high profitability through data-driven decision-making. |
| The Travelers Companies Inc. | – Strong Commercial Insurance Portfolio: Covers businesses, reducing reliance on personal auto/home insurance. – Stable Financials: Maintains a conservative risk profile and strong capital reserves. – Steady Dividend Growth: Regularly increases payouts to investors. |
| Allstate Corporation | – Strong Market Position in Auto & Home Insurance: Large customer base ensures stable revenue. – Investment in Digital Services: Improving claims processing and customer experience through technology. – Competitive Pricing Strategies: Helps attract and retain policyholders. |
Credit Ratings & Market Sentiment for Insurance Companies
| Company | Credit Rating (S&P/Moody’s/Fitch) | Bullish or Bearish? | Reason for Sentiment |
|---|---|---|---|
| Berkshire Hathaway Inc. | AA+ / Aa2 / AA+ | Neutral | Well-diversified, but insurance segment faces some risk from climate-related claims. |
| UnitedHealth Group Inc. | AA / Aa3 / AA- | Bullish | Strong growth in health insurance and expansion in digital healthcare. |
| MetLife Inc. | AA- / A1 / AA- | Neutral | Solid financials, but interest rate fluctuations can impact growth. |
| Prudential Financial Inc. | A+ / A2 / A+ | Neutral | Expanding globally but faces headwinds from economic downturns. |
| The Progressive Corporation | AA / Aa2 / AA | Bullish | Leading auto insurer with innovative pricing models and strong profitability. |
| The Travelers Companies Inc. | AA / Aa2 / AA | Neutral | Consistent performance but faces exposure to natural disaster risks. |
| Allstate Corporation | AA- / A1 / AA- | Bullish | Strong digital transformation efforts and solid revenue growth. |
Analysis of Credit Ratings & Future Sentiment
- Bullish Companies:
- UnitedHealth Group: Leading the way in healthcare expansion, making it a strong long-term bet.
- Progressive: Best positioned for auto insurance growth, especially with its AI-driven underwriting models.
- Allstate: Investing heavily in digital transformation, making its future more promising.
- Neutral Companies:
- Berkshire Hathaway: Strong overall, but its insurance division may face climate-related challenges.
- MetLife & Prudential: Stable performers, but dependent on interest rate policies that impact investment income.
- Travelers: Well-managed, but exposed to unpredictable risks like natural disasters.
Final Thoughts
- Investors seeking stable, long-term returns should consider UnitedHealth, Progressive, and Allstate as bullish options.
- For conservative investors, Berkshire Hathaway, Travelers, and MetLife offer steady growth with lower risk.
- Market fluctuations, interest rate changes, and regulatory shifts will play a key role in the future of these insurance giants.
I hope you liked this article
Happy Investing
