Ward Group, provider of benchmarking and best practices services to the insurance industry, has announced the 2014 Ward’s 50 top performing life/health insurers. Each Ward's 50 company has passed all safety and consistency screens and achieved superior performance over the five years analyzed. This is the 24th year Ward Group has conducted the analysis.
The Ward’s 50 L&H group produced a 21.8 percent statutory return on average equity from 2009 to 2013, compared to 8.1 percent for the L&H industry overall, Ward Group said
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“Most insurers saw improvements in both financial returns and overall premium levels,” explained Jeff Rieder, partner and head of Ward Group. “In clear signs of continued optimism, our research shows considerable investments are being made in technology, product enhancements and identifying ways to deliver a better customer experience. Companies will be challenged to manage the costs of these initiatives, but have strong financial positions to support the investments. Total policyholder surplus continues to grow and overall financial stability for the industry remains very strong. In selecting the Ward’s 50, we identified companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results.”
To qualify for the Ward’s 50 designation, insurers must pass minimum thresholds, including: surplus and premiums of at least $50 million for each of the past five years; adjusted net income in at least four of the past five years; compound annual growth in premiums of between -10 percent and +40 percent.
Insurers then are measured and scored on the following:
- Five-year average return on average
- Five-year average return on average
- Five-year average return on total
- Five-year growth in revenue
- Five-year growth in surplus
The Ward’s 50 L&H group also outpaced the industry for five-year policyholder surplus growth, achieving 42.5 percent compared to 25.3 percent, and net premium growth of 22.7 percent compared to 16.6 percent. The group also achieved lower expense ratios.
“The expense ratio increased in 2013 for the L&H benchmark. We still find the Ward’s 50 benchmarks comparing better than the industry average.” Rieder said. Expenses relative to revenue were 14.0 percent lower for the Ward’s 50 L&H group last year.
2014 Ward’s 50 Life & Health Companies (alphabetically)
Aetna Life Insurance Company
AFLAC
Alfa Life Insurance Corporation
Amalgamated Life Insurance Company
American Equity Investment Life Insurance Company
American Family Life Insurance Company
American Fidelity Assurance Company
American General Life Insurance Company
American Republic Insurance Company
Americo Financial Life and Annuity Insurance Company
Anthem Life Insurance Company
Bankers Life & Casualty Company
Berkley Life and Health Insurance Company
Blue Cross and Blue Shield of Kansas
BlueBonnet Life Insurance Company
BMI Companies
Central United Life Insurance Company
CIGNA Group
Combined Insurance Company of America
Companion Life Insurance Company
Continental Assurance Company
Erie Family Life Insurance Company
Farm Bureau Life Insurance Company
Farmers New World Life Insurance Company
Federated Life Insurance Company
First Investors Life Insurance Company
Forethought Life Insurance Company
Funeral Directors Life Insurance Company
General Re Life Insurance Corporation
Great American Life Insurance Company
HCC Life Insurance Company
HM Life Insurance Company
Homesteaders Life Company
Liberty National Life Insurance Company
Life Insurance Company of the Southwest
LifeCare Assurance Company
LifeWise Assurance Company
M Life Insurance Company
National Teachers Associates Life Insurance Company
National Western Life Insurance Company
Ozark National Life Insurance Company
Protective Life Insurance Company
RiverSource Life Insurance Company
Security Benefit Life Insurance Company
Tennessee Farmers Life Insurance Company
Trustmark Insurance Company
United Insurance Company of America
UnitedHealthcare Insurance Company
Universal Guaranty Life Insurance Company
USAA Life Insurance Company
