The Performance of Insurance Initial Public Offerings

Abstract

This abstract was created post-production by the JFI Editorial Board.

This paper finds an interesting pattern in returns from investing in initial public offerings of public equity for insurance companies with large market capitalization. This publicly known information that predicts future returns does not support the concept of market efficiency for the long-run performance of initial public offerings by insurance companies. This pattern may provide opportunities for active trading strategies in public equities of insurance companies to create superior returns for investors.