Biggest Life Insurance Companies
Life insurance is more than just a way to protect someone’s family should the worst occur -- it’s also big business. A historical glance at life insurance history shows that the Romans were the first to develop a form of life insurance, although in a much more undeveloped way than what we have now. And back then, we weren’t talking about big business or Fortune 500 companies. A brief glance at companies that sell life insurance reveals that it’s one of the world’s biggest businesses, and the government bailout of AIG in 2008 shows that some are considered in the list of the businesses that are “too big to fail.”
In 2008, New York Life ranked 76, TIAA-CREF ranked 82, Northwestern Mutual ranked 118, Massachusetts Mutual Life Insurance 135, Guardian Life Insurance Company of America 279, Thrivent Financial for Lutherans 409 and Western & Southern Financial Group 441, according to Forbes.
New York LifeFounded in 1840s well before the Civil War, New York Life has ranked for years in Fortune 500’s top 100 list. Today it is the nation’s largest mutual life insurance company. In 2008, its operating revenue grew about 8 percent to about $14.01 billion, earnings were $1.283 billion, insurance sales reached $2.4 billion and investment sales reached $26.6 billion, according to its Web site. New York Life has a Aaa rating with Moody’s Investor Service, an AAA with Standard and Poor’s, an AAA with Fitch Ratings, and A++ with A.M. Best.
Northwestern MutualFounded in 1857, Northwestern Mutual doesn’t lag far behind New York Life. The company touts its $4.5 billion 2009 dividend payout as the largest life insurance dividend in the industry. Northwest Mutual also had a $13.4 billion surplus at the end of 2008. Northwest Mutual has a Aaa rating with Moody’s, an AAA with Standard and Poor’s, an AAA with Fitch Ratings and A++ with A.M. Best.
TIAA-CREFFounded in 1918, TIAA-CREF originally was started to provide financial information for educators. Today, TIAA-CREF has more than 3.6 million employees who are participating in more than 27,000 retirement plans, and had $363 billion in combined assets by the end of 2008, according to its Web site. TIAA-CREF has AAA rating with Moody’s, an AAA with Standard and Poor’s, an AAA with First Ratings and A++ with A.M. Best. These are the same ratings that New York Life and Northwestern Mutual have, and are considered the best in the industry.
AIGJust because a company is ranked high with Forbes or placed on the prestigious Fortune 500 doesn’t mean it’s currently successful. In 2007, American International Group, or AIG, ranked No 10, and in 2008 didn’t slide much, falling only to No. 13. But it did have to take a $11 billion write down in 2007 and was slammed with a $5.3 billion loss at the end of 2007, according to Forbes. Its earnings dropped 56 percent to $6.2 billion, according to Forbes. The company continued to struggle in 2008, until the government allowed AIG to take as much as $182.5 billion. A share in AIG sold in mid-2009 for $1.67, down considerably from 12 months before, when a share was about $34.
Insurance companies such as those listed in this article can boast strong financial earnings, even during times of economic hardships. Some may argue that such high revenues show that these companies are just out to make money, and aren’t concerned about watching out for a family’s welfare.
But others will argue that life insurance policies could be a much better decision than even investing, in light of market fluctuations. These companies are quick to mention the fact that they’ve endured the test of time -- the stock market crash of 1929, the Great Depression, two world wars and multiple recessions. Many of these companies don’t sell products other than life insurance as well as several life insurance options.
Companies such as AIG do remind us, however, that giants do fall eventually. Even AIG could have also boasted about living through world wars, many recessions and multiple hard times, before it needed a bailout in 2008. Those who like having plenty of options when purchasing a product won’t be lacking in their search in for life insurance. |
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