The Most Profitable Insurance Company in the World (2024)

Maleha Afzal

·5-min read

We recently compiled a comprehensive report on the 20 Most Profitable Insurance Companies in the Worldand in this article, we'll be discussing the world's most profitable insurance company.

The Current State of Insurance

The Red Sea Crisis is impacting the insurance industry. On January 16, Reuters reported that war insurance claims have risen tremendously amid the Red Sea Crisis. The insurance industry claimed that risk premiums have increased to almost 1% from 0.7% a week before the report date. This translates to higher costs for ships making trips through the Red Sea for trade. The report also highlighted that shipowners considered voyaging through South Africa to be more cost-effective than paying hundreds and thousands in transit fees and insurance premiums.

The increase in insurance costs is not just because of the Red Sea crisis. on May 21, Reuters reported that the number of auto insurance customers in the United States was up by 6% in the first quarter of 2024 compared to the previous year. The report also highlights that auto insurance costs expanded by 22.6% in April, the highest annual increase since the 1970s. The surge in auto insurance costs is primarily derived from the increasing cost of vehicle repair and maintenance. Moreover, vehicles have started to be damaged more frequently due to severe and adverse weather conditions. Experts expect to see an increase in customer acquisition as companies become more profitable due to high costs and greater demand.

Some Updates from Major Insurance Companies

The Travelers Companies, Inc. (NYSE:TRV)and AXA SA (OTC:AXAHY) are among the most profitable insurance companies in the world. Let's read some recent updates from these companies. You can also read our piece on the largest insurance companies in the world.

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The Travelers Companies, Inc. (NYSE:TRV) is a leading insurance company in the United States. On January 2, the company announced the acquisition of Corvus Insurance, a cyber insurance general underwriter. Corvus has spearheaded some of the industry-leading integrated cyber sales products, underwriting services, and support capabilities. The platform, developed by Corvus, is capable of identifying vulnerabilities in a policy to minimize the possibility of customers experiencing cyber attacks. The acquisition brings crucial cyber capabilities to The Travelers Companies, Inc. (NYSE:TRV).

AXA SA (OTC:AXAHY), another prominent insurance company, is known for its customer-centric strategic decision-making. On May 14, AXA SA (OTC:AXAHY) announced a partnership with the United Postal Union (UPU) to improve insurance through postal networks. Almost 1.5 billion people across the globe, and 28% of the adult population, receive financial services through postal networks. The partnership allows AXA Emerging Customers, the group's inclusive insurance business, to send out affordable insurance solutions to low-income classes, comprising almost 14 million people and businesses, using physical means of distribution.

The Most Profitable Insurance Company in the World (1)

A business executive reviewing insurance policy documents with a customer.

Our Methodology

In this article, we have listed the 20 Most Profitable Insurance Companies in the World. To find the most profitable insurance companies in the world, we sifted through various sources including industry reports, rankings available on various websites, our own rankings, and stock screeners from Yahoo Finance and Finviz. We compiled a list of the top insurance companies in the world. For companies that are publicly traded, we decided to rank them according to trailing 12-month net income, as of March 31, 2024. We used annual net income for private companies and public companies with no available TTM net income data. For foreign companies, we converted the net income to US dollars according to their respective exchange rates. Finally, we narrowed down our selection to rank the 20 Most Profitable Insurance Companies in the World based on their net income in ascending order.

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The Most Profitable Insurance Company in the World

1. Berkshire Hathaway Inc. (NYSE:BRK-A)

Net Income (TTM) as of March 31, 2024: $73.42 Billion

Berkshire Hathaway Inc. (NYSE:BRK-A) ranks first on our list of the most profitable insurance companies. The company owns several insurance businesses including GUARD Insurance companies, Berkshire Hathaway Speciality Insurance, Gateway Underwriters Agency, and GEICO, to name a few. For the fiscal year ended 2023, Berkshire Hathaway Inc. (NYSE:BRK-A) reported insurance premiums worth $83.4 billion. GEICO, an auto insurance company, provides insurance coverage across auto, motorcycle, ATV, RV, boat, snowmobile, travel, pet, homeowner, renter, and jewelry insurance lines. It has a 13.8% market share based on written premiums and reported $3.6 billion in underwriting earnings before taxes, for the fiscal year ended 2023. Berkshire Hathaway Reinsurance Group on the other hand reported $1.9 billion in underwriting earnings before taxes.

To learn about some of the most profitable insurance companies in the world, check out our free report on the 20 Most Profitable Insurance Companies in the World.

At Insider Monkey, we delve into a variety of topics, however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published on Insider Monkey.

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