When we speak about insurance the first thing that creeps into our mind is the fear of a contingent loss that might strike us at given point of time. In other way round insurance can be defined as the hedging instrument through which one party transfers its risk to the other in exchange for a lump sum payment given any contingent loss occurs. In every country insurance companies plays a pivot role in the growth of the economy. The correlation has to be defined in brief; if we look closely we will observe that insurance companies are providing safety to consumers who are buying cars, buying household properties and several other goods and services. Now, if the insurance companies are taking premium from consumers and ensuring them from any sort of damages then indirectly it is allowing the public consumption to rise (on various goods and services), allowing banks to provide credit and allowing economy to flourish. The pros and cons might lie with insurance companies but in spite of all of this insipidness we will discuss on the top 3 insurance companies that have been creating big noises in the US markets.
The history of MetLife goes back some 140 years back when it was originated in the year 1868. In the present arena it is considered to be a global provider in the field of insurance, annuities and other beneficial programs related to employees. The company released its IPO in Y2K. The current market capitalization of the company stands at US$39.77bn. The company is considered to be the largest in US and second largest on worldwide basis in life insurance. The company also possesses some glorious accolades and one of them being to be on the “FORTUNE’s list of the most-admired companies” for a consecutive period of 3 years.
2. Prudential Financial
In the year 1875 the company began its journey and it was initially named as the “The Widows and Orphans Friendly Society”. One of the recognizable symbols is of “The Rock of Gibraltar” that has been embedded as the logo of Prudential. At present the company runs its businesses in the fields of life insurance, annuities, mutual funds, pension related funds, asset management services and many others. The current market capitalization is around US$26.39bn. The company has an enviable track record in the “Corporate Equality Index” and has been awarded almost every year since 2003 by the “Human rights campaign”.
1. American International Group (AIG)
Exactly a hundred years back an insurance agency was established in Shanghai which later on was called as the “American International Group”. The company is involved in various fields of insurance which includes general insurance, domestic life insurance and services offered after retirement, financial services and foreign life insurances. According to the reports that were published in the “2011 Forbes Global 2000 list” AIG was considered to be the 29th biggest company in the globe. The current market capitalization of the company stands at US$56.63bn. In 2008, the company though went through a nightmare as the subprime crisis as well as the liquidity crisis hit them badly. The Federal Reserve however bailed them out with a 24 month credit-liquidity facility which allowed AIG to draw a whopping amount of US$85bn and clear their debt obligations.