Underwriting Performance and Investment Risk‑Taking in the Property‑Liability Insurance Industry
"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 underwriting and have relatively low‑risk investment portfolios. A subset of insurers, however, do the opposite: they consistently earn low returns on underwriting and have relatively high‑risk investment portfolios."