Abstract
This study examines the relationship between the investment earnings of life insurance firms in New Zealand and their organisational characteristics. Using data for the period 1988–1993, a pooled Weighted Least Squares regression model is estimated. Consistent with expectations, the empirical results indicate that investment earnings were higher for stock companies than for mutuals. They were also positively associated with the size, leverage and underwriting risk of life insurance firms. Life insurance firms holding proportionately more financial than non-financial assets have low investment yields. The liability structure of life insurance firms was unrelated to their investment earnings.
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