Lloyd's Financial Distress and Contagion within the US Property and Liability Insurance Industry

Joseph A Fields, Linda S Klein and Edward G Myskowski

Journal of Risk and Uncertainty, 1998, vol. 16, issue 2, 173-85

Abstract: The intra-industry effect of Lloyd's financial distress on publicly traded US insurance companies is examined. Given Lloyd's prominence in the international insurance industry, large losses raised questions about the industry's capacity for certain types of risks and the financial solvency of other insurers. The market value of US property-liability insurers fell significantly at the announcement. This decline is related to the firm's revenues from insurance and reinsurance exposure. Results support contagion between Lloyd's distress and the US insurance industry. The study raises concerns about the potential for a systematic disruption of the supply of reinsurance in the international marketplace. Copyright 1998 by Kluwer Academic Publishers

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://journals.kluweronline.com/issn/0895-5646/contents link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jrisku:v:16:y:1998:i:2:p:173-85

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11166/PS2

Access Statistics for this article

Journal of Risk and Uncertainty is currently edited by W. Kip Viscusi

More articles in Journal of Risk and Uncertainty from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().