The question of who is the biggest insurance company in the world is a topic that has been debated for years. With the global insurance industry estimated to be worth over $5 trillion, it's no wonder that many companies are vying for the top spot. However, when we look at the numbers and consider various factors such as market capitalization, revenue, and number of employees, one company stands out as the clear leader: Berkshire Hathaway.
Berkshire Hathaway, founded by Warren Buffett in 1964, is a conglomerate holding company that owns several subsidiaries, including Geico, Nebraska Furniture Mart, and Dairy Queen. The company's primary business, however, is through its insurance operations, which include property and casualty insurance, life insurance, reinsurance, and annuities. Berkshire Hathaway's insurance operations are primarily conducted through its subsidiary, Berkshire Hathaway Insurance Group (BHIG), which was formed in 2008.
When it comes to market capitalization, Berkshire Hathaway is the largest company in the world. As of September 2021, Berkshire Hathaway had a market capitalization of approximately $700 billion, making it more valuable than any other publicly traded company in the world. This is a significant achievement considering that Berkshire Hathaway's primary business is not directly related to insurance.
However, when we look at the insurance industry specifically, the ranking of the largest insurance company can vary depending on the criteria used. For instance, if we consider market share, then MetLife might come out on top. MetLife is a leading global provider of individual and group life insurance, disability insurance, and long-term care insurance. It operates in more than 30 countries and has a presence in the United States, Canada, Europe, Asia, and the Middle East.
Another company that often makes the list is State Farm, which is known for its auto insurance offerings but also provides a wide range of other insurance products, including homeowners, renters, and commercial coverage. State Farm operates in all 50 states and has a significant presence in the agricultural insurance market.
However, when we look at the size of the insurance companies as measured by their total assets under management (AUM), Berkshire Hathaway's BHIG comes out on top. In 2020, Berkshire Hathaway reported AUM of approximately $1.5 trillion, making it the largest insurance company in terms of assets under management.
It's important to note that the ranking of the largest insurance company can change over time due to various factors such as mergers and acquisitions, regulatory changes, and economic conditions. Additionally, some companies may focus on specific segments of the insurance market, while others may offer a broader range of products.
In conclusion, Berkshire Hathaway is currently the largest insurance company in the world based on market capitalization. However, when we look at the insurance industry as a whole, the ranking can vary depending on the criteria used. Nonetheless, Berkshire Hathaway's dominance in the insurance sector is undeniable, and its success is a testament to the power of diversification and the strength of its core businesses.