As new economies emerge, insurance companies are expanding out to other countries offering specialized insurance products, giving rise to massive conglomerates in the process. Globalization, technology, emerging markets, and favorable political climates have facilitated insurance companies to establish operations across boundaries. Most of these conglomerates have interests in various industries and are generating billions of dollars in revenue from their insurance subsidiaries. Top insurance companies that generated the most income in the year 2015 include:
Berkshire Hathaway Inc. recorded revenue of $210.8 billion making it the most profitable insurance company in the world. It was founded in 1889 by Oliver Chance and initially was a low-performing textile mill company. It has headquarters at Omaha, Nebraska US. Berkshire Hathaway is a conglomerate encompassing several insurance companies.
Berkshire has numerous subsidiaries and affiliated companies and has interests in GEICO Corp. which has nine insurance companies with a presence in 50 US states and offers auto-related insurance covers. It is the second largest auto insurance company in the US. The General Re Corporation through its subsidiaries and affiliates provide insurance and reinsurance throughout the world. The Berkshire Hathaway Reinsurance Group and US Investment Corporation (USIC) have subsidiaries around the world and is comprised of smaller insurance companies. Warren Buffet is the Chief Executive Officer and is the formidable force behind the company’s massive growth. Charlie Munger is the Vice Chairman. The management style is decentralization where most of the authority is delegated to local managers who are required to submit reports and cash flows to the headquarters on a monthly basis.
AXA Insurance Company recorded revenue of $147.5 billion making it the 2nd most profitable multinational insurance company in the world. It was founded in 1817 through the merging of several insurance companies and has its headquarters in Paris, France. AXA is a multinational conglomerate with businesses under it operating mostly in Europe, North America, Asia-Pacific, and North America. AXA is the second largest company in France.
The Insurance Companies under it offer various insurance products such as life, savings, health, vehicle, investments, and retirement. They include AXA Financial in the US, AXA UK in the UK, AXA Konzern in Germany, and AXA Belgium in Belgium. AXA has a board of sixteen members to oversee its operations, six of whom are from other countries other than France.
Allianz in Germany was the 3rd most profitable multi-national insurance company generating $140.3 billion from its insurance operations. Founded in 1890, it started off by offering accident and marine policies. It branched out to London in 1893 and had become a leading insurance provider in Europe by 1920. Headquartered in Munich, Germany, the multinational is active in over 70 countries employing well over 142,000 employees. Its insurance operations have extensive covers such as life, health, travel, retirement, and asset management. The company’s activities are governed by three bodies which are: General Management, Board of Directors, and Supervisory Board.