Biggest Life Insurance Companies In The United States

The US life insurance industry is huge and competitive. Bigger may not be better for consumers or investors, but it does indicate life insurance longevity and financial stability.

Life insurance guarantees the customer or the insured’s beneficiaries a specified amount. Life insurance companies get recurring premiums from customers. The greatest life insurance policies and businesses can help policyholders’ loved ones cover funeral costs and debts since they give financial security.

This article lists the eight major US insurance companies. Please note that our group’s ranking order is dependent on premium volume and may vary often.

1. New York Life

New York Life Insurance Company holds 8.3% of the US life insurance market and was the second largest insurance company in 2021.

Aside from life insurance, New York Life sells long-term care insurance, annuities, mutual funds, and has a developing investment management company.

New York Life is a mutual insurance company that isn’t publicly listed. It reported $2.2 billion in operating earnings in 2021, a record high. The company also declared a dividend of $1.9 billion for 2021. Dividends are monetary payments provided by companies to their customers.

2. Northwestern Mutual

Northwestern Mutual Life Insurance Company owns 8.93 percent of the American market.

In addition to life insurance and other insurance products, the company provides annuities, investment options, and financial planning services. The company recorded revenue of $31.1 billion in 2020, rising from $34 billion in 2021 and $11.7 billion in 2020.

Northwestern Mutual is a mutual insurance company that functions for the benefit of policyholders, not stockholders. Policyholder benefits increased to $11.7 billion in 2020, from $11.5 billion in 2019. The company is privately owned and has set its highest dividend distribution of $6.5 billion for 2022.

3. MetLife

Metropolitan Life Insurance company (NYSE: MET) is a publicly traded insurance and financial services company. MetLife, or MetLife, is the third-largest life insurer in the United States, accounting for 7.18% of the market.

MetLife provides term life, group universal life, and group variable universal life insurance, as well as accidental death benefits.

The company also offers a wide range of other insurance products, including health and home. MetLife is more than just an insurance firm; it also offers financial products such as investing and retirement plans, as well as assistance in providing employee benefits to small businesses.

MetLife’s return on equity for fiscal year 2021 was 9.7%, and its book value was $77.12.

MetLife. “MetLife Announces Full Year and Fourth Quarter 2021 Results.”

4. Prudential

A publicly listed financial services giant, Prudential Financial, Inc. (NYSE: PRU) offers insurance, annuities, mutual funds, investment management, and other products. Since 1875, the company has operated in over 40 North and South American, European, and Asian countries. Prudential held 6.66% of the US life insurance market in 2021.

Universal and variable universal life insurance are available from Prudential. SimplyTerm, Term Essential, Term Elite, and PruTerm One are Prudential’s term life insurance products. First three are personal insurance, with SimplyTerm offering basic coverage and the other two offering customizations and riders. The fourth option, PruTerm One, is for small business owners paying off short-term loans.

Due to the coronavirus pandemic, Prudential lost $374 million in 2020 but made $7.72 billion in 2021. Prudential managed $1.742 trillion in 2021, up from $1.721 trillion in 2020. The corporation will distribute approximately $11 billion in capital, including dividends.

Prudential. “Prudential Financial, Inc. Announces 2021 Results.”

5. Lincoln National

Lincoln National Corp. (NYSE: LNC) is a financial services firm that provides life insurance, long-term care insurance, annuities, and retirement planning services. It does not function beyond the United States. Lincoln Financial Group is the brand that the company and its subsidiaries use to sell to consumers.

Lincoln National holds 5.2% of the 2021 life insurance market.

In its annual report, Lincoln National reported $660 million in written life insurance premiums versus $630 million in 2020. Lincoln’s net income for 2021 was $1.4 billion, up 64% from $499 million the year before.

6. MassMutual

Massachusetts Mutual Life Insurance Company, or MassMutual, was the seventh largest life insurer in the United States in 2021.

MassMutual provides a broad range of insurance products, including whole life, universal life, term life, and variable universal life insurance. The company also provides disability and long-term care insurance.

In addition to insurance, MassMutual offers a full suite of financial products to employees through their employers, including annuities, investments, wealth management, and workplace benefits.

In 2021, the company generated almost $20.2 billion in income from insurance premiums and $30.4 billion in revenues. As a result, the company’s net loss was $310 million, down from a profit of $128 million the year before. MassMutual’s market share is 6.29%.

7. State Farm

State Farm, founded in 1922, is the seventh largest life insurer in the U.S. It is well recognized for providing home and auto insurance. MA, WI, and NY do not license State Farm to sell life insurance. The State Farm offers term, whole, and universal life insurance. The company has 3.29% of 2021 life insurance market share.

Couples can be covered under State Farm’s combined universal life policy. Limited payment choices allow customers to modify how and when they pay for the company’s whole life insurance.

Life insurance from State Farm exceeded $212 billion in 2021. Individual life insurance policies with premiums paid totaled $1.1 trillion by 2021. State Farm earned $929 million in net profits, paid policyholders $593 million in dividends, and earned $5.7 billion in premium income in 2021.

8. John Hancock

John Hancock is the eighth largest life insurer in the United States and holds 3.15% of the 2021 life insurance market share. The company is part of Manulife Financial (NYSE: MFC), the largest public company and largest life insurance company in Canada. John Hancock offers two types of life insurance: term and permanent life insurance.

In the 2021 annual report, Manulife reported an increase in net income, earning 7.1 billion compared to 5.9 billion in 2020.

Source: Investopedia