Top 20 insurers witness revival in 2021 after pandemic
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The performance of the top 20 global public insurance companies by revenue witnessed a revival in 2021, as COVID-19 restrictions were eased and global economic activity almost touched pre-pandemic levels, according to GlobalData’s Companies Database. The leading data and analytics company found that the average annual revenue growth of these companies stood at 9.5% while the total premiums earned* growth rate was 8%.
Of the top 20, a total of 16 companies reported year-on-year (y-o-y) revenue growth in 2021, with the most notable performers being CNP Assurances, Prudential Financial, Assicurazioni Generali, and Zurich Insurance.
Parth Vala, Company Profiles Analyst at GlobalData, comments: “Premiums earned and extremely bullish global stock markets in 2021 helped insurance companies record substantial investment gains and achieve growth in investment incomes.”
CNP Assurances’ massive 30.8% revenue growth was attributable to the 14.5% growth in its premiums earned and substantial growth in fair value of financial assets at fair value through profit. The company’s value of insurance contracts grew by 18.9% to EUR27.5 billion, which was bolstered by a 21.2% rise in life contracts.
Prudential Financial benefitted from an investment gain of $4 billion, against an investment loss of $3.9 billion in the previous year. The company also reported an improvement of 5.3% in its net investment income.
Assicurazioni Generali’s total premiums earned grew by 14.5% on account of an increase in life insurance premiums. In addition, the company also registered massive growth in its investment gains over the previous year, which enabled a 22.3% rise in its revenue growth.
Zurich Insurance’s 19.2% revenue growth was attributable to 8.3% rise in earned premiums, reaching $44.3 billion. The company’s growth was also bolstered by a 58.2% rise in net investment income on account of a 94.7% improvement in investment gains on unit-linked products.
Some of the biggest losses in revenue were seen by Japan Post Insurance and Legal & General. These companies reported an 11.6% and 9.9% respective decline in their earned premiums, which caused revenue decline. Legal & General derives around 80% of its revenue from investment income, and this dropped by 8.3% y-o-y in 2021.
Vala concludes: “With the global economy on tenterhooks following rapidly changing geopolitical scenarios and the potential threat of new variants of COVID-19, the upcoming months are likely to pose further challenges to the insurance industry.”
* ‘Premiums earned’ refers to the premium collected by an insurance company for the portion of a policy that has expired.