Here, we argue that the commercial for-profit insurance companies act more like a memory-less system in a way that the … conventional commercial counterpart. The objective of this study is to quantify the extent of profit made by the commercial … insurance companies born out of the premium after meeting up operating expenditures and claim settlements and how this profit …

capital requirements that mitigates the perverse risk incentives observed, provided the set of acceptable risks is suitably …

Previous research documents that risk-arbitrageurs earn positive abnormal returns. However, this research treats the … sum of two risks, deal risk and liquidity risk, as a measure of deal risk alone. We employ a forward looking measure of … liquidity risk – the VIX – and we show that arbitrageurs' ‘abnormal' returns are higher when liquidity risk is higher. Thus …