America’s top 10 health insurance companies generated over $287 billion in sales during 2009. That represents a 7.2% gain over the $268 billion posted just one year earlier.
These titans of the health insurance sector are highly profitable. Overall, the 10 largest US health insurers garnered $12.7 billion in profits during 2009 – up a formidable 53.6% from $8.3 billion in 2008.
Most consumers who buy private health coverage want to deal only with well-established financial institutions. Consistent growth in revenues and profits helps to identify and benchmark successful health insurance companies.
The lists below help consumers to gauge the revenues, profitability and financial strength for some of America’s leading health insurance companies.
US Health Insurance Companies with Highest Sales
Geographically, headquarters for the top 10 health insurers are spread across the U.S.
Some companies have their home offices in highly populated American cities such as Philadelphia and San Jose. Others are located in smaller cities including Minnetonka (population 51,000) and Rye Brook (9,568).
- UnitedHealth Group (headquarters in Minnetonka, MN) … US$87.1 billion (up 7.3% from 2008)
- WellPoint (Indianapolis, IN) … $65 billion (up 6.2%)
- Aetna (Hartford, CT) … $34.8 billion (up 12.3%)
- Humana (Louisville, KY) … $31 billion (up 7%)
- Cigna (Philadelphia, PA) … $18.4 billion (down 3.6%)
- Health Net (Woodland Hills, CA) … $15.7 billion (up 2.3%)
- Coventry Health Care (Bethesda, MD) … $14 billion (up 17.5%)
- WellCare Health Plans (Tampa, FL) … $6.9 billion (up 5.5%)
- Amerigroup (Virginia Beach, VA) … $5.2 billion (up 14.9%)
- Universal American (Rye Brook, NY) … $5 billion (up 6.5%).
Among the top American health insurance companies, Coventry Health Care and Amerigroup had the fastest revenue gains in 2009. Only Cigna experienced a revenue decline.
Profit Leaders in US Health Insurance
Nine of the top 10 U.S. health insurance companies recorded profits during 2009. Cigna showed the largest percentage gain, while 4 other insurers had double-digit percentage improvements in profit.
- UnitedHealth Group … US$3.8 billion (up 28.4% from 2008)
- WellPoint … $4.7 billion (up 90.5%)
- Cigna … $1.3 billion (up 345.9%)
- Aetna … $1.28 billion (down 7.8%)
- Humana … $1 billion (up 60.7%)
- Coventry Health Care … $242 million (down 36.6%)
- Amerigroup … $149.3 million (up $200 million)
- Universal American … $140 million (up 47.5%)
- WellCare Health Plans … $39.9 million (up $76.7 million)
- Health Net … -$49 billion loss (down $144 million).
In 2008, Amerigroup incurred a $50.7 million loss while WellCare Health Plans posted a $36.8 million deficit. Both insurers came back with million-dollar profits for 2009.
Only Health Net racked up a loss in 2009. Its $49-billion represents a $144 million slide from it $95 million in profits one year earlier.
Financial Strength Ratings for Health Insurance Companies
Standard & Poor’s provides an objective assessment of an insurance company’s credit rating and financial strength. Possible S&P scores range from AAA+ (highest) to C- (lowest) or D (company in reorganization).
Sorted alphabetically, the following list shows financial strength ratings for health insurance companies discussed above.
- Aetna … A-
- Amerigroup … BB
- Cigna … BBB
- Coventry Health Care … BBB-
- Health Net … BB-
- Humana … BBB-
- UnitedHealth Group … A-
- Universal American … BB+
- WellCare Health Plans … B
- WellPoint … A-
For this peer comparison, the highest S&P financial rating score is A-. America’s 2 biggest health insurers, UnitedHealth Group and WellPoint, share the same credit score as Aetna.
After reviewing the latest revenues, profitability and financial strength scores for a health insurance company, informed consumers are in a much better position to compare competitive health insurance quotes.
Should President Obama impose stricter regulations on the health insurance industry, the largest and most profitable health insurers are well positioned in a more regulated business environment.
Sources
This article provides independent calculations and insights based on data from the Fortune 500 ranking of America’s largest corporations for 2009 and Standard & Poor’s credit ratings.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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