· Ping An maintains title of world’s most valuable insurance brand, with a value of US$26.2 billion, according to latest Brand Finance Insurance 100 report.
· GEICO crowned world’s strongest insurance brand, 2018’s only AAA rated
· European insurance giants Allianz and AXA grow in strength and value
· Metlife brand value bounces back up to US$8.1 billion after spinning off retail business into Brighthouse Financial
Ping An tops the 2018 Brand Finance Insurance 100 league table as the sector’s most valuable brand for the second year running. The Chinese insurer’s brand value grew 60%, or US$9.8 billion, to an all-time high of US$26.2 billion. This result comes on the back of reporting the highest profit in the industry, with new business up 32%. This is due to China remaining more dynamic than more established Western markets and thanks to the brand’s successful policy of introducing and cross-selling new products.
David Haigh, CEO of Brand Finance, commented:
“Ping An’s brand is safe and well as the company celebrates its 30th anniversary this year. The brand’s growing market share and excellent financial results speak for themselves. Ping An’s equity with customers also continues to grow, but the brand needs to remain attentive to other stakeholders’ perceptions too and stay alert to challenges from competitors.”
Rise of Chinese brands
In spite of a difficult year for many insurers, the values of the top 10 brands in the league table have risen by an average of 32%, with many brands changing ranks. Under economic pressures, competition in the sector is fierce and innovation is driving success, exemplified by Ping An’s dominance and the rise of China.
The two brands breaking into the top 10 this year both come from China. CPIC (US$8.7 billion) and PICC (US$7.2 billion) are now positioned sixth and ninth, respectively. Brands from mainland China outperformed brands from other parts of the world, growing at an average rate of 42%. This rise in Chinese brand values is largely due to the decrease in perceived risk, as the businesses grow and become more stable.
GEICO shows strength
At the same time, Ping An has been knocked back into second place in terms of brand strength, as GEICO became the strongest insurance brand in 2018 with a Brand Strength Index (BSI) score of 84.8 out of 100, and the only one achieving an AAA rating. Scoring very highly across multiple metrics in Brand Finance’s customer preference market research, GEICO has shown it is able to maintain high stakeholder equity while also growing the business at a consistent rate, and when up against a year with large natural disasters, including Hurricanes Harvey and Irma.
Allianz and AXA record growth
European giants Allianz and AXA performed well across all geographies in the Brand Finance market research, both jumping up two grades in brand rating to AAA- and AA+ respectively, showing the established brands command global recognition and respect.
Germany’s Allianz has held on to second place in the brand value league table as it edged back above the US$20 billion mark after recording a decline in 2016 and 2017. The 33% year-on-year brand value gain, from US$15.2 billion to US$20.2 billion, was the result of stronger premiums, as Allianz looks for continued growth with significant investments in technology and new markets, including taking a stake in the UK’s LV=.
AXA moved up one position in the brand value table to fourth, trading places with pan-Asian life insurer AIA, following 41% growth to US$13.3 billion.
MetLife’s brand livens up
The United States’ most valuable insurance brand, MetLife, rebounded 23% to US$8.1 billion, after dropping in value last year. Rising from ninth to seventh place, the brand added US$1.5 billion to its value over the past year, arriving just US$46 million shy of its all-time high recorded in 2014. The impressive result comes after spinning off the retail business into the new brand, Brighthouse Financial, last year. The new retail insurance company will likely continue to capitalise on the strength of the MetLife brand for the foreseeable future by using a tagline endorsement in an attempt to transfer valuable stakeholder equity.
Note to Editors
Every year, leading valuation and strategy consultancy Brand Finance values the world’s biggest brands. The 100 most valuable insurance brands in the world are included in the Brand Finance Insurance 100 league table.
Brand value is equal to a net economic benefit that a brand owner would achieve by licensing the brand. Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand.
More information about the methodology as well as definitions of key terms are available in the Brand Finance Insurance 100 report.
Data compiled for the Brand Finance Insurance 100 league table and report is provided for the benefit of the media and is not to be used for any commercial or technical purpose without written permission from Brand Finance.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.