Abstract
This study analyses the extent and effects of macroeconomic and firm-specific factors on insurer liquidity in the context of UK life companies with panel data for the period 1985 to 2002. Ordinary least squares regressions, static and dynamic panel data models are estimated. Econometric tests indicate a preference for the random effects estimation procedure over other alternatives. The results indicate that the life office liquidity is an increasing function of equity returns, free asset ratio, termination rate, and claims ratio and a decreasing function of pension reserves-to-total reserves. Also, it is found that mutual companies tend to hold more liquid assets than do stock companies.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
