The Insurance Final Boss
Grant Hesser@granthesser
The idea
Insurance is a business where people pay premiums up front and claims come later, so the float gets invested while brokers collect fees without taking on risk. I want to own the whole stack rather than bet on one piece, so this take splits evenly across health plans, life and retirement, property and casualty, specialty insurers, reinsurers, and brokers, each around the same weight with a small cash reserve. If one layer has a rough year, like rising medical costs or softer property pricing, it only hits that slice.
What it owns
- Health insurers collect premiums from employers, individuals and the government, which makes them the biggest pool of insurance money in the US. · Elevance HealthIt runs Blue Cross Blue Shield plans across many states, covering employers, individuals and Medicaid members., UnitedHealth GroupIt is the biggest US health plan, collecting premiums from employers and individuals while managing medical costs., The Cigna GroupIt leans on employer health plans and pharmacy services rather than government programs, giving the health layer a different mix., HumanaIt is the Medicare Advantage specialist, running private plans for seniors paid by the government.18%
- Car, home and business insurers sell cover every household and company has to buy, and they invest the float in between. · ProgressiveIt is the auto insurer known for pricing risk better than rivals, keeping claims and costs below premiums., ChubbIt insures businesses and wealthy households in dozens of countries, maintaining discipline in underwriting., TravelersIt covers businesses, homes and cars in the US, underwriting at a profit as commercial prices ease., AllstateIt is the household auto and home insurer, keeping rates ahead of claims including in bad storm years.18%
- Specialty insurers cover unusual, hard-to-price risks that standard carriers turn down, so they can charge more for that cover. · Markel GroupIt writes specialty insurance and invests the float in stocks and whole businesses, combining underwriting profits with investment returns., W. R. BerkleyIt runs dozens of small units that each insure a narrow kind of commercial risk, letting it price niches carefully and underwrite at profit., Kinsale Capital GroupIt insures hard-to-place risks that standard insurers turn down, running at lower cost than competitors in a growing market.18%
- Life and annuity companies hold savers' money for decades and earn a spread on it as people live longer and retire. · Prudential FinancialIt collects retirement savings now and pays income later, earning the spread between investment returns and promised payouts., MetLifeIt sells life insurance and workplace benefits across the US, Asia and Latin America, investing premiums held for decades., AflacIt sells supplemental cover for things like cancer and accidents, with most of its business in Japan, spreading geographic risk.18%
- Brokers take a fee on policies without carrying any of the claims risk, so their profits hold up through good and bad years for underwriters. · Arthur J. GallagherIt grows by buying smaller brokers and serving mid-sized businesses, collecting fees with no claims risk., Willis Towers WatsonIt combines insurance broking with benefits and pension consulting for employers, earning fees on both sides., AonIt earns a fee on policies and reinsurance deals it arranges without carrying the risk itself.13%
- Reinsurers are the insurers' insurers: they take the catastrophe risk and get paid well for it. · RenaissanceRe HoldingsIt is the insurer for insurers on catastrophes like hurricanes and earthquakes, earning premiums that cover losses over a full cycle., Everest GroupIt is a global reinsurer with an insurance arm, giving the reinsurance layer wider coverage than catastrophes alone.12%
- Cash5%