Global insurers’ market capitalisation grows as results improve

The aggregate market capitalisation of the top 25 global insurers grew 8.3% to $3.02trn on a quarter-on-quarter basis during the first quarter of 2024, according to GlobalData. Most of the firms recorded a sharp growth in the first quarter, largely a result of P&C premium adjustments, the analytics firm said. Murthy Grandhi, company profiles analyst at GlobalData, said: “Insurers adjusted premiums in specific segments, notably property and casualty (P&C) line, to counteract escalating claims expenses attributed to inflation, persistent geopolitical tensions in the Middle East, and natural calamities. These adjustments have allowed the global insurance industry to effectively address challenges and achieve positive results in the first quarter of 2024.” One of the biggest growths in market capitalisation was by Progressive Corp, which saw its shares register 29.9% growth in market value during the first quarter of 2024, driven by the exceptional 2023 performance due to robust demand for insurance policies, said GlobalData. Allstate Corp’s market valuation rose by 24.2%, reaching $45.5bn by the end of the first quarter. The insurer recorded an 11.1% year-over-year increase in total revenue for 2023, reaching $57.1bn, surpassing analyst projections and largely due to its recent merger with National General, said GlobalData. Berkshire Hathaway saw a 17% increase in market capitalisation attributed to its positive performance for 2023, with total revenue of $364.5bn and a net profit of $97.1bn. “This has propelled the stock’s upward trajectory, affirming Berkshire Hathaway’s status as a coveted asset for the eighth consecutive quarter,” said Grandhi. Some insurers saw a fall in market capitalisation, including Humana, which experienced a 25.8% decrease in market value, largely attributed to a modest 3.7% increase in payment rates for patients enrolled in Medicare Advantage (MA) plans by the US Centers for Medicare and Medicaid Services for 2025, said GlobalData. Another was AIA Group, which saw its market value eroding by 23.7%, primarily due to actions against it by the Insurance Authority and the Independent Commission Against Corruption addressing issues of non-compliance and corruption. GlobalData said this was specifically related to the unlicensed sale of insurance policies to visitors from mainland China via the broker channel. “The insurance sector is poised for substantial changes in 2024, propelled by fluctuating reinsurance expenses and the escalating threat of cyber risks, fuelled by rapid technological progress such as generative artificial intelligence. Industries worldwide are growing reliant on IT, IoT, operational technology, and digital services such as cloud computing, all integral components of numerous risk owners’ supply chains,” said Grandhi. He added: “Nevertheless, unforeseen challenges such as natural disasters, regulatory shifts, and continuing stand-off in and around Red Sea may keep insurers on their toes. Insurers capable of adapting, diversifying, and effectively managing risks stand to capitalise on potential growth opportunities amidst these evolving dynamics.”

Global insurers’ market capitalisation grows as results improve

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