Characteristics of Short-Term Equity Management of Property-Liability Insurers

Abstract

This paper investigates short-term equity trading practices of non-group affiliated P/L insurers in the U.S. Using the NAIC’s Annual Statements, all trading records reported on the statements are utilized to identify short-term trading activities. This study documents that about one-third of the sample insurers report at least short-term equity trading, and financial characteristics of insurers are highly associated with the insurers’ short-term equity trading activity than underwriting and firm characteristics.