In a recent ranking by S&P (Standard and Poor) Global Market Intelligence, India's state-owned Life Insurance Corporation (LIC) has made a resounding mark as the world's fourth-largest global life insurer. This assessment, based on life and accident & health reserves, showcases LIC's formidable financial prowess, solidifying its position among the industry's elite.
S&P's list of the top 50 life insurers worldwide, graded by their life and accident & health reserves—recognized as a critical financial indicator for insurers—revealed LIC's impressive standing with reserves amounting to $503 billion as of 2022.
Leading the global pack are Germany's Allianz SE with reserves of USD 750 billion, followed closely by China Life Insurance Co. with USD 616 billion and Nippon Life Insurance Co. holding USD 536 billion in reserves. S&P's ranking, a testament to financial strength, underlines the significance of reserves in determining an insurer's standing within the industry.
This latest acknowledgment positions LIC as the third largest life insurer in Asia, an arena traditionally dominated by Japanese and Chinese insurance giants.
The criteria for ranking insurers revolved around their 2022 life and accident & health reserves. These reserves symbolize a commitment to fulfilling future obligations outlined in existing policies, according to S&P.
Among the top 50 global life insurers ranked by life and accident & health reserves, European companies, spanning six nations, claimed a lion's share, securing 21 positions. Notably, the United Kingdom emerged as the base for seven of these leading carriers.
Asia made a substantial imprint on the global stage, securing 17 spots on the list. Mainland China and Japan jointly held the top spot in Asia, each boasting five companies headquartered within their borders.
North America staked its claim with 12 spots on the list, including eight US-based companies, two in Canada, and two in Bermuda. The US emerged as the leader in housing the highest number of life insurers among individual countries, with eight entities making it to the top 50.
MetLife Inc., the US's premier life insurance company, secured the seventh position, while Prudential Financial Inc., the second-largest US-based life insurer, clinched the eighth spot in the ranking.
S&P emphasized that the specific components of reserves can vary based on each insurer's accounting practices. The analysis was a diligent effort based on publicly available information from insurance companies globally and non-public insurers in North America and Europe.