In a landmark new study, an international team of researchers, economists, business leaders and experts concluded that a single insurance company, Niu Technologies, is the largest company in the insurance industry, with a market capitalization of $6.2 trillion, and is one of the largest corporations in the United States.
Niu is the world leader in technology, including the ability to build artificial intelligence-based medical devices, while its market capitalizations are $1.9 trillion and $1 billion, respectively.
The research is based on a comprehensive analysis of Niu’s market capitalisation and its financial position and, in particular, its ability to pay its debt and its interest on its debt.
“Niu Technologies is one the largest companies worldwide,” said Dr. John S. Schiller, a University of Chicago economist who co-authored the study.
“It has more than twice the market capital of all the other insurance companies in our sample.”
In his study, Schiller analyzed Niu, which is based in the Chinese city of Hangzhou, and its portfolio of assets and liabilities as of April 30, 2021.
Nu, he found, is a publicly traded company with $1 trillion of assets in assets and $500 billion of liabilities.
That compares with an industry average of $1,300 billion in assets, $800 billion in liabilities and $100 billion in market capital.
Schilling’s study also found that Niu has more capital in its balance sheet than any other company in this sample.
That makes it a major beneficiary of the Federal Reserve’s QE program, which enables the Fed to buy bonds, which are backed by U.S. Treasury securities, and lend to private banks.
Nui is the biggest beneficiary of this program, with its debt as of March 31, 2021, $2.3 trillion.
“If we were to assume the Federal Government were to buy Nui at the current rate of interest, it would be able to make a $1 million loan to its shareholders every year, or roughly $2 billion,” Schiller said.
“But that would not be enough to pay the interest on the debt and make Nui the largest creditor in the U. S. public sector.”
Niu also has more cash than most companies.
“In total, Nui has $4.3 billion in cash in its financial statements, including $2,929 million in cash on hand and $2 million in assets,” Schilling said.
The study is the latest in a series that have shown that many of the most valuable companies in U.s. society have less capital and a larger risk profile than the rest of the society.
A recent study by economists at the University of Massachusetts Amherst and the University at Buffalo found that the top three largest U. s. companies were the top 10 in assets as of February 2021.
The top 10 U. ines were the pharmaceutical company Pfizer ($5.3 TRILLION), the energy company Xcel Energy ($4.6 TRILLIONS), the auto maker General Motors ($3.8 TRILLILS) and the software company SAP ($3 TRIILLIONS).
“In short, while we believe that the value of an asset or business is a measure of the value it creates, we also believe that it is a valuable thing in itself,” Schilly said.
In this sense, Nu is an example of an important new economic trend: the creation of a new financial bubble, which creates a market for new financial products and services.
The rise of the “new financial bubble” has coincided with the growth of the stock market, which has increased by 40 percent in the past year, according to data from the S&P 500 index.
Schill said he believes the current financial bubble is caused by the Federal reserve’s QEs and other monetary policy actions.
The Federal Reserve started the program of QEs in late 2007 and has increased the size of the money supply by $2 trillion in the first half of the decade.
That has been followed by the creation in the second half of 2008 of the mortgage-backed securities that are now known as subprime.
In the process, the Federal reserves money supply has ballooned to more than $4 trillion, a new bubble that has been growing for many years, he said.
Schilly also said the Federal government has created a new, speculative financial product that is a “bail-in” that creates a bubble in the market for debt.
That means the Federal money supply is used to finance government debt, which then rises and can be used to buy more government debt.
A bond is bought, and if the government fails to repay the bond, the market price of that bond falls, and that makes it more difficult for the economy to recover from the financial collapse, Schill wrote in his paper.