US property and casualty insurance companies had a median price-to-estimated full-year 2023 earnings multiple of 12.1x in Q1 2023, according to an S&P Global Market Intelligence.
Property and casualty is a broad category of insurance that includes auto and motorcycle insurance, home and renters insurance, crop insurance and even airplane insurance.
The 10 largest property and casualty companies account for 48% of the total market. Each of the top six companies has auto insurance as the largest component of its insurance business.
State Farm is the biggest property and casualty insurer in the U.S., with more that $70 billion in total premiums. That is nearly $19 billion more than Berkshire Hathaway, which owns Geico, and nearly $22 billion more than Progressive.
Each of the five largest insurers in the U.S. has more than 5% of the total market across the full range of P&C insurance products.
TOP 10 largest property and casualty insurers
|Rank||Company||Premiums written (bn)||Market share|
Property and casualty insurance are two types of coverage that protect the property you own, cover medical costs or cover damage for which you are found responsible. P&C insurers may cover a wide variety of property and situations, which means there is a long list of different types.
Largest property and casualty insurance companies
In addition to being the largest insurance carrier nationally, State Farm is also the most popular insurer in 35 states. Liberty Mutual and Berkshire Hathaway are the top insurance companies in five states, while Progressive has the largest market share in two states.
US P&C Insurers Results
Kinsale Capital Group continues to be the most richly valued insurer trading on major US exchanges. The insurer’s price-to-estimated 2023 earnings multiple stood at 31.0x at the end of the first quarter. The company also posted the strongest result in terms of one-year total return among the top 15 property and casualty (P&C), multiline insurers in the analysis, at 31.9%. Based on analyst estimates, Kinsale Capital’s normalized EPS will climb 24.2% year over year to $9.69 in 2023 from $7.80 in 2022.
ProAssurance Corp.’s EPS is expected to jump by more than 100% in 2023, the biggest predicted increase in the top 15. Analysts anticipate the company producing EPS of 99 cents in 2023, compared to 45 cents for the prior period.
The group of 27 public property and casualty and multiline insurers in this analysis is expected to see its median 2023 earnings per share increase 20.5% compared to the past year.
US P&C, multiline insurance stocks by price-to-estamated
Most expensive US life insurer
As of the end of the first quarter, Primerica was the most expensive US life carrier, with a price-to-estimated full-year 2023 earnings multiple of 11.5x. Georgia-based Aflac Inc. took second position with a multiple of 11.4x.
The other public US largest life insurance companies trading at more than 10x their estimated 2023 EPS estimates are Principal Financial Group Inc. and Globe Life Inc.
US life insurance stocks by price-to-estamated
In terms of one-year total return, Unum Group posted the strongest result among all US life insurers included in the analysis, at 30%.
Overall, analysts project that the life industry’s median EPS will rise 20.1% year over year in 2023.
AUTHOR: Kris Elaine Figuracion – Insurance Associate at S&P Global Market Intelligence