We document median abnormal stock returns of 12% (U.S. $17.2 billion) for international insurance firms designated as Global Systemically Important Insurers (G-SII). These gains are associated with a fall in default probabilities, an increase in expected asset risk and an insignificant loss to...

In July 2013, the Financial Stability Board classified nine global insurance firms as Global Systemically Important Financial Institutions (G-SIFI). From the AIG bailout in 2008 through this announcement, we document average abnormal stock returns of 9.6% for the designated firms. These equity...