Ward Group Names Top 50 Life and Health Insurance Companies
Annually, Ward Group analyzes the financial performance of nearly 800 life-health insurance companies domiciled in the United States and identifies the top performers. This group is called the Ward’s 50 for the year. Each Ward’s 50 company has passed all safety and consistency screens and achieved superior performance over the five years analyzed. The Ward’s 50 life-health group of insurance companies produced a 16.1% return on average equity from 2005 to 2009 compared to 3.7% for the life-health industry overall. This is the 20th year Ward Group has conducted the analysis.
“Most companies now understand the current economic situation and its impact on their business. However, the scars from the last two years are still affecting business decisions,” explains Jeff Rieder, President of Ward Group. “It is important for companies to maintain a long-term vision throughout difficult business cycles. In selecting the Ward’s 50, we identify companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results.”
Safety and Consistency Tests
Insurance companies are evaluated and must pass minimum thresholds to be considered for the Ward’s 50 designation. Each company must pass the following primary safety and consistency tests:
• Surplus and premiums of at least $50 million for each of the five years analyzed
• Adjusted net income in at least four of the last five years.
• Risk-based capital ratio of at least 150% for each of the five years analyzed
• Compound annual growth in premiums between -10% and +40%
Performance Measurements
Companies that pass the safety and consistency tests are measured and scored on the following elements:
Five year average Return on Average • Equity
• Five year average Return on Average Assets
• Five year average Return on Total Revenue
• Five year growth in Revenue
• Five year growth in Surplus
Key Performance Benchmarks
An important objective of the Ward’s 50 is to compare their performance as a group with the rest of the industry. In addition to achieving greater levels of income returns, the Ward’s 50 benchmarks also outperformed in other key performance benchmarks. The Ward’s 50 life-health group of companies outpaced the industry for five year policyholder surplus growth (8.4% compared to 5.6%) and premium income growth (12.4% compared to 1.3%).
A recurring theme with the Ward’s 50 companies is achieving greater levels of efficiency compared to peer companies. “Although we do not directly use expenses as a factor in the Ward’s 50 evaluation, a common attribute of the top performing segment is the ability to operate at lower expense ratios,” says Mr. Rieder. In 2009, expenses relative to revenue were 16.8% lower for the Ward’s 50 life-health group. “Our research consistently finds the top companies achieve a proper balance between managing expenses and making prudent investments in systems or processes to meet customer needs and corporate goals.”
2010 Ward’s 50®
Life-Health Companies
(listed alphabetically)
Aetna Life Insurance Company
AFLAC
American Family Life Insurance Company
American Fidelity Assurance Company
American Republic Insurance Company
Amica Life Insurance Company
Auto-Owners Life Insurance Company
Baltimore Life Insurance Company
Berkshire Life Insurance Company of America
Centurion Life Insurance Company
CIGNA Group
Combined Insurance Company of America
Farm Bureau Life Insurance Company of MI
Federated Life Insurance Company
Fidelity Investments Life Insurance Company
Fidelity Security Life Insurance Company
First Investors Life Insurance Company
Forethought Life Insurance Company
General Re Life Insurance Corporation
Great American Life Insurance Company
Health Net Life Insurance Company
HM Life Insurance Company
Homesteaders Life Company
Household Life Insurance Company
Humana Insurance Company
Liberty National Life Insurance Company
Metropolitan Life Insurance Company
National Guardian Life Insurance Company
National Life Insurance Company
National Western Life Insurance Company
New York Life Insurance Company
Oxford Life Insurance Company
Ozark National Life Insurance Company
Pacific Guardian Life Insurance Company
Physicians Mutual Insurance Company
Primerica Life Insurance Company
Reliance Standard Life Insurance Company
Shelter Life Insurance Company
Southern Farm Bureau Life Insurance Co.
Standard Insurance Company
Symetra Life Insurance Company
Tennessee Farmers Life Insurance Company
Thrivent Financial for Lutherans
Trustmark Insurance Company
United Healthcare Insurance Company
United Life Insurance Company
USAA Life Insurance Company
USAble Life Insurance Company
WellPoint Group
Western & Southern Life Insurance Company
An important objective of the Ward’s 50 is to compare their performance as a group with the rest of the industry. Comparisons based on benchmarks set by the Ward’s 50 group of companies are available for individual companies and the total industry. Visit www.wardinc.com for more information.
Ward Group Announces
Top Performing L&H Insurers
Life-HealthReturn on Average Equity(2005-2009)0%5%10%15%20%Ward’s50TotalIndustry16.1%3.7%
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