Will UnitedHealth Group Inc (NYSE: UNH) Remain A Global Insurance Leader?

January 12, 2018, 11:57 am ET, BY Simon M.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

UnitedHealth Group Inc (NYSE: UNH) was ranked as the top global insurer early this year by A.M. Best in their ranking of the 25 largest insurers in the world. The company clinched the top spot based on the value of its net premiums written (NPW), which was the highest among the top 25 global insurance companies.

Article Summary

UnitedHealth Group was ranked as the top insurer early this year.

The company has been ranked among the top five global insurers for several years.

UNH contributed significantly to the Dow’s rally to 25K last year.

Here’s the trading report on UNH.

MetLife Inc (NYSE: MET) also clinched the top spot among insurance companies with the largest non-banking assets where it displaced AXA S.A, which fell to second position. The rankings of the top global insurers was released by BestWeek on January 1, and is based on data collected by BestLink coupled with additional research.

UNH had a stellar 2017 as one of the leading stocks in the Dow Jones Industrial Average (INDEXDJX: .DJI) given that the index rallied by over 5,000 points last year. The American health insurer contributed 429 points to the DJIA’s impressive run in 2017. A total of five leading stocks contributed about half of the Dow’s gains.

UNH’s contribution to the Dow’s rally was second only to Boeing Co (NYSE: BA), which contributed 898 points to the DJIA. Other companies in the top five include Caterpillar Inc. (NYSE: CAT), 3M Co (NYSE: MMM) and Home Depot Inc (NYSE: HD).  

UnitedHealth Group could also contribute significantly to the Dow’s rally this year if it meets the average analysts’ price targets set for the stock. The company’s performance last year generated significant gains for its investors, but the question remains whether it can replicate and even exceed last year’s performance this year.  

The annual ranking report by BestWeek also indicated that there was stability in the global insurance sector given that four of the top five companies ranked by NPW remained in the top five, while all the top five in the non-banking assets class also remained in the list. Although the past is not an indicator of future performance, there is a high likelihood that UNH shall replicate its past performance.

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