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Top 10 Insurance Companies
The global insurance market overview
2003 saw some signs of recovery after two years of worldwide recession and growth
rates are gradually picking up.
The world insurance premium volumes, after a drop from $2,444,903 in 2000 to
$2,408,252 in 2001, are now growing at a steady pace, and reached $2,940,670 in
2003, experiencing a compound annual growth rate of 6.3% in the period 2000 and
2003.
Life insurance premiums have experienced a very slow growth after the decrease in
premium income in 2001. In many countries 2003 saw a further decrease in premium
income, for example in the UK.
The compound annual growth rate for non-life insurance in Europe between 2000
and 2003 totalled 15.6%, compared with only 5.1% for life insurance during the
same period. Only one country, Germany, experienced a negative growth during this
period.
Bancassurance has been particularly successful in France, Italy and Spain. Banks in
these countries enjoy more than 50% of the distribution of life assurance products.
In Italy, for example, bancassurance accounted for 56% of the distribution of life
assurance products, with five of the top 10 life assurance competitors in the market
owned by Italian banks.
Depolarisation would encourage a competitive advantage for banks holding in the
UK. This would allow non-independent institutions to offer life and pensions
products from more than one provider, coupled with the introduction of simpler
products.
The top 10 global insurers: company analysis
Nippon Life, based in Osaka, Japan, is both the largest provider of life insurance in
Japan and one of the world's largest insurance companies in terms of total assets and
policies in force. The company's core business is life insurance. Products and
services within this area are made available to both individual and corporate/group
clients. The company also offers non-life products and such cover as medical
treatment and long-term care, as well as asset management/asset formation products.
For the fiscal year ended December 2003, ING's company's revenues (including
both insurance and banking operations) were ?64,913 million, compared to
?70,650from the previous year. Operating net profit amounted to ?4,053 million, an
18.1% increase compared with 2002. Banking profits were up by 72.6%, which
compensated for the somewhat weaker performance of insurance activities.
Allianz is hoping its latest 'New Dresdner' program will see the bank earn its cost of
capital again in 2005.Consistent bad news from the Dresdner investment banking
arm has blemished the organisation's reputation. Harsh cost cutting tactics have been
operating for two years now and Dresdner still has not managed to return to
profitability.
State Farm Insurance is a personal lines property/casualty company that provides
auto insurance, non-medical health, life, and homeowners insurance. The company
has various subsidiaries across the United States that sell all types of insurance. It
also operates State Farm Bank, which provides additional financial services. State
Farm Insurance is headquartered in Bloomington, Illinois.
Axa capitalises on its core strengths: over 50 million clients worldwide; a 44,000-
strong captive distribution force; a global brand; unique product skills in areas such
as insurance underwriting, long-term investments, and financial advice, all on a scale
that enables Axa to leverage best practices and operations platforms across the
group.
Assicurazioni Generali has one of the strongest balance sheets in the sector and
boasts ?1.7 billion in excess capital. The low level of equity exposure, limited
exposure to asset management and commercial banking and no direct exposure to
the United States or Japan gives it a very stable outlook in the current environment,
where there is a clear correlation between capital adequacy and share price
performance.
While half of its business comes from the UK, it has presence in France, the
Netherlands, Spain, Italy, Ireland, Canada and Australia. Aviva operates through its
subsidiaries under names such as Aviva, CGNU, Norwich Union, CGU, Morley
Fund Management and Delta Lloyd. It has 30 million customers.
For the fiscal year ended March 2004, the Dai-ichi Mutual Life Insurance Company
achieved revenues that totalled .5,090.4 billion ($46,990 million) a decrease of 4%
against the previous years revenues that were .5,255.9 billion ($47,565 billion).
Reduced insurance premiums and lower revenues from group pensions were some of
the key reasons behind the fall in overall revenues.
Zurich benefits from the considerable scale of its operations. It maintains a presence
in 60 countries globally, and a strong focus on the key markets of the UK, U.S. and
Switzerland, with expanding operations in continental Europe. It is the UK's third
largest household insurer in terms of gross earned premiums. It also has 2,000
financial planning businesses in the UK, through the Zurich Advice Network. This is
also one of the country's largest mortgage introducers. In total it has around 38
million customers.
For fiscal 2003 AIG's revenues were $81.3 billion, an increase of 20.5% on the
previous year's results of $67.4 billion. The company achieved operating revenues
that totalled $15,805 million, a 47.5% increase on the previous year's total of
$10,712 million.