Essays in Insurer Financing

Download or read book Essays in Insurer Financing written by Joshua Drake Frederick and published by . This book was released on 2019 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: The following research offers a view into the financial decisions of insurers operating in the United States. The first essay, "Are Internal Capital Markets Smart? Evidence of Winner Picking" provides evidence of efficient capital allocation in the U.S. Property-Casualty insurance industry. Current empirical analyses are consistent with the Winner Picking Hypothesis, and provide new evidence on internal capital market transfer outcomes, consistent with performance based capital allocation. The second essay "Money for Nothing: The Regulatory Effects of the ACA on Health Insurer Cash Holdings" explores the effect of the Affordable Care Act (ACA) on health insurer liquidity. From 2010 to 2015, cash as a proportion of assets increased by 39.81%. Current results indicate that when faced with regulatory uncertainty firms hold excess cash, consistent with the precautionary cash holdings hypothesis. The study is the first, to my knowledge, to provide evidence of the post-regulatory effects on firm cash holdings.