Insurers' principal function – underwriting – is to assess and price customer risk. Economic theory suggests that insurers should prioritize underwriting over investment as a source of income. We find that many U.S. non-life insurers conform to theory: they consistently earn high returns on...

We extend the results of Lando and Skødeberg (2002) with the first examination of non-Markov effects for property-liability insurer rating transitions. Results provide evidence for the existence of three rating phenomena, including an initial rating effect (future rating transitions depend on...

Underwriting and investment are two important and related business activities of insurance companies. However, studies on the interrelation between underwriting and investment risks of Property-Liability (P-L) insurance companies are sparse in the literature. Using a sample of U.S. P-L insurers,...