This research analyzes the performance of the Risk Based Capital (RBC) ratio and other variables in predicting insolvencies in the property-liability insurance industry during the period 1994 to 2008. This research contributes to the literature by analyzing a longer period of time than previous...

This study investigates how U.S. property-liability insurers changed their behavior response to the risk-based capital (RBC) requirements implemented in 1994. We posit that We posit that insurers may have acted to manage their operations and/or exploit anomalies in the RBC may have acted to...

This study examines whether property-liability insurers have an optimum capital structure by testing the tradeoff and pecking order theories for this industry. Capital structure is measured with the net premiums written to surplus ratio, and alternatively, with the liability to asset ratio. The...