Product-market strategy and underwriting performance in the United Kingdom’s property–casualty insurance market

Michael Adams, Vineet Upreti, Jing Chen

Research output: Contribution to journalArticle


Drawing on a framework from the organizational economics literature, we utilize a panel data design to examine empirically the effect of motor insurance and liability insurance business on the overall underwriting performance of insurers operating in the United Kingdom’s (UK) property–casualty insurance market. We find that participation in liability insurance contributes positively to underwriting performance, whereas motor insurance is associated with inferior underwriting performance. Additionally, we find that higher reinsurance ratio is associated with better underwriting performance, but reduced profit margins. Our results show that higher leverage too is associated with better underwriting performance. We conclude that our results could have potentially important commercial and/or policy implications.

Original languageEnglish
Pages (from-to)1012-1031
Number of pages20
JournalThe European Journal of Finance
Issue number11
Early online date12 Feb 2019
Publication statusPublished - 24 Jul 2019


  • Underwriting performance
  • United Kingdom
  • insurance

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (miscellaneous)

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