Under pressure: investment behaviour of insurers under different financial and regulatory conditions

Research output: Contribution to journalArticlepeer-review

Abstract

Firms that have losses are expected to sell tax-free securities and replace them with taxable securities since they can no longer benefit from tax savings. However, after the most recent financial crisis, firms’ decisions to rebalance their investment portfolios may have led to additional losses during a period of stressed financial performance and increased insurance regulation. This study examines portfolio allocation behaviour in the property and casualty insurance industry. The results show that investment limitations imposed by insurance regulators can inhibit desired investment allocation post the financial crisis.

Original languageEnglish (US)
Pages (from-to)1-20
Number of pages20
JournalGeneva Papers on Risk and Insurance: Issues and Practice
Volume46
Issue number1
DOIs
StatePublished - Jan 2021
Externally publishedYes

Keywords

  • Insurance
  • Portfolio rebalance
  • Regulation
  • Statutory accounting principles
  • Tax-free and taxable securities

ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting(all)
  • Finance
  • Economics and Econometrics

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