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The determinants of corporate financial performance in the Bermuda insurance market

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  • M. Adams
  • M. Buckle

Abstract

Drawing a framework from the organizational economics literature this study examines the determinants of corporate (i.e. underwriting and investment related) financial performance in the Bermuda insurance market. Using panel data for 1993-1997, it was found that, as expected, highly leveraged, lowly liquid companies and reinsurers have better operational performance than lowly leveraged, highly liquid companies and direct insurers. Contrary to what was hypothesized, performance was positively related to underwriting risk. However, the size of companies and the scope of their activities were not found to be important explanatory factors.

Suggested Citation

  • M. Adams & M. Buckle, 2003. "The determinants of corporate financial performance in the Bermuda insurance market," Applied Financial Economics, Taylor & Francis Journals, vol. 13(2), pages 133-143.
    • Handle: RePEc:taf:apfiec:v:13:y:2003:i:2:p:133-143
    DOI: 10.1080/09603100210105030
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    References listed on IDEAS

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