Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/178515 
Year of Publication: 
2008
Citation: 
[Journal:] Journal of Risk and Financial Management [ISSN:] 1911-8074 [Volume:] 1 [Issue:] 1 [Publisher:] MDPI [Place:] Basel [Year:] 2008 [Pages:] 77-99
Publisher: 
MDPI, Basel
Abstract: 
We examine the impact of demutualization announcements by 13 life insurance companies during 1996-2000 on the value of existing stock-owned life insurance companies and companies in other segments of the insurance industry. Demutualization announcements are associated with negative stock price reactions in the days around the announcement, and with larger and positive stock price reactions in the days following announcement. Overall, the results support the contention that life insurance company demutualizations signal favorable future industry conditions and/or increased likelihood of future acquisitions for all segments of the insurance industry. Active-minded investors may use these results to develop alpha-generating investment strategies.
Subjects: 
Demutualization
Stock conversion
Life insurance
Insurance industry
JEL: 
G22
L22
L89
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-sa Logo
Document Type: 
Article

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