- Quarterly & Annual Earnings
- The Top Insurers by Market Cap: A 2024 Snapshot
As 2024 unfolds, the U.S. insurance sector is showing resilience, with the top 20 insurers by market capitalization reporting strong profitability in the first three quarters of the year. This report highlights key trends shaping the industry and takeaways for insurers and brokers alike
Financial conditions in the U.S. insurance market
As 2024 unfolds, the U.S. insurance sector is showing resilience, with the top 20 insurers by market capitalization reporting strong profitability in the first three quarters of the year. This report highlights key trends shaping the industry and takeaways for insurers and brokers alike.
This analysis offers an early look at market conditions ahead of our full report, set for release in March. That comprehensive edition will include Q4 data and an expanded view of the top 85 U.S. insurers by market cap. To receive it as soon as it’s published, sign up here.
A strong year for P&C insurers
The property and casualty (P&C) sector posted robust gains in 2024, driven by premium growth, improved underwriting results, and rising investment income.
- Premium growth: Net premiums earned in the P&C sector climbed 12% year-over-year, propelled by rate increases and disciplined underwriting. Insurers capitalized on a competitive landscape, adjusting rates to keep pace with inflation and shifting risk profiles.
- Underwriting performance: The industry’s combined ratio—measuring claims and expenses against premium income—improved to 85.6% in Q3 2024, down from 90.6% a year earlier, signaling stronger profitability.
- Investment income: Rising interest rates and strong fixed-income returns fueled an 18% jump in investment income in Q3, reflecting gains in insurers’ fixed-maturity portfolios.
As insurers navigate an evolving landscape, these financial trends underscore a market that is adapting—and thriving—amid changing economic conditions.
The favorable conditions in the property and casualty (P&C) sector translated into robust profit growth for insurers such as Travelers and The Hartford, both of which benefited from strong underwriting gains and rising investment income.
By contrast, the health insurance sector faced mounting pressures in 2024, as escalating healthcare costs and tighter reimbursement rates in government programs weighed on profitability.
- Rising cost pressures: Health insurers—including UnitedHealth Group, Elevance Health, and CVS Health—grappled with higher healthcare expenses, driven in part by a surge in delayed-care treatments following the COVID-19 pandemic and a sharp rise in behavioral health costs. These trends pushed medical loss ratios (MLRs) higher, compressing profit margins.
- Government program challenges: Medicare and Medicaid, two primary revenue streams for health insurers, became less profitable as rising costs, higher behavioral health claims, and upcoding concerns outpaced government rate increases. The result: declining profits for key players such as Elevance Health and UnitedHealth.
Even as health insurers posted strong revenue growth, rising medical costs and deteriorating margins underscored the challenges ahead—especially for those reliant on government-backed plans.
Key trends shaping the insurance market
The 2024 market landscape ushered in several pivotal trends that reshaped the strategies of insurers and brokers alike.
- A shift toward digital transformation
Insurers across sectors accelerated their adoption of digital technologies to enhance efficiency, cut costs, and improve customer experience. In the P&C sector, companies like Progressive leveraged AI-driven claims processing and automated underwriting to sharpen their competitive edge and manage risk exposure more effectively.
- Pressure on investment income
Insurers with sizable investment portfolios—including MetLife and Prudential—faced headwinds as equity market volatility and shifting interest rates weighed on returns. Life insurers, in particular, struggled with lower-than-expected yields from fixed-income assets, prompting a strategic pivot toward alternative investments such as real estate and infrastructure.
- Surging demand for cyber insurance
As cyberattacks and data breaches surged, demand for cyber insurance climbed. Insurers such as AIG, Chubb, and The Hartford expanded their offerings in response. Yet, pricing and claims challenges intensified, as insurers grappled with the evolving nature of cyber risks and the growing complexity of underwriting in this space.