This paper investigates the role of heterogeneity in the insurance sector. Here, heterogeneity is represented by different types of insurance provided and regions served. Using a balanced panel data set on Brazilian insurance companies as a case study, results corroborate this underlying hypothesis of heterogeneity's impact on performance. The implications of this research for practitioners and academics are not only addressed in terms of market segmentation—which ones are the best performers—but also in terms of mergers and acquisitions—as long as insurance companies may increase their performance with the right balance of types of insurance offered and regions served.