We explore whether life insurers use a unique reinsurance arrangement to manage their regulatory capital. Typical reinsurance arrangements allow insurers to reduce their regulatory capital by transferring liabilities, and the associated assets, to reinsurers. With modified coinsurance, insurers...

We examine whether accounting rules can influence gains trading activities in financial institutions.Gains trading occurs when managers strategically sell invested assets to affect earnings.We focus on the U.S. insurance industry, where Life insurers are subject to a rule that requiresthem to...

We examine whether and how institutional investors respond to mandatory climate risk disclosure. We exploit the staggered adoption of a climate risk disclosure regulation by U.S. states that made the disclosure mandatory for insurers. Leveraging detailed data on insurers' investment portfolios,...

In this study, we examine the effect of capital regulation on insurers’ pricing behavior using homeowners’ insurance price data. We leverage a regulatory reform that imposes greater regulatory capital costs for insurers to provide property coverage in catastrophe-prone areas. We first...

In this paper, we explore the climate risk exposure of U.S. life insurers’ commercial mortgage loan portfolios, focusing on sea level rise (SLR) and flood risks. Commercial mortgages are an important asset class of life insurers: Approximately 15% of the life insurance industry asset is held...