Investment Income in Life Insurance

Investment Income in Life Insurance

Bibliographic Details
Main Author: Klopfenstein, Ashley
Language:English
Published: Marietta College Honors Theses / OhioLINK 2020
Subjects:
Finance
Life Insurance
Investment Income
Investments
Premium Revenue
Insolvency
Online Access:http://rave.ohiolink.edu/etdc/view?acc_num=marhonors1588419641715527
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spelling ndltd-OhioLink-oai-etd.ohiolink.edu-marhonors15884196417155272021-08-03T07:14:50Z Investment Income in Life Insurance Klopfenstein, Ashley Finance Life Insurance Investment Income Investments Premium Revenue Insolvency This research investigates the relationship between life insurance companies' premium revenue and income from their investments. The main goal of the study is to determine whether life insurance providers could utilize investment income to compensate for low premium revenue. A panel regression analysis is conducted on the financial data from eleven public life insurance providers for a period of over 28 years. This study finds that there is a negative correlation between the percentage of total revenue derived from premium revenue and the percentage of total revenue derived from net investment income and there is a positive correlation between the percentage of total revenue derived from premium revenue and the percentage of total revenue derived from equity investment income. The results of this study suggest that life insurance companies can use the income from their investments to supplement income generated from premiums paid by their consumers. The role of investment income by life insurance companies introduces risks to the companies that they may become reliant on that investment income to compensate for underwriting losses. If this reliance becomes too taxing it could contribute to insolvency risk. 2020-05-07 English text Marietta College Honors Theses / OhioLINK http://rave.ohiolink.edu/etdc/view?acc_num=marhonors1588419641715527 http://rave.ohiolink.edu/etdc/view?acc_num=marhonors1588419641715527 unrestricted This thesis or dissertation is protected by copyright: all rights reserved. It may not be copied or redistributed beyond the terms of applicable copyright laws.
collection NDLTD
language English
sources NDLTD
topic Finance
Life Insurance
Investment Income
Investments
Premium Revenue
Insolvency
spellingShingle Finance
Life Insurance
Investment Income
Investments
Premium Revenue
Insolvency

Klopfenstein, Ashley
Investment Income in Life Insurance
author Klopfenstein, Ashley
author_facet Klopfenstein, Ashley
author_sort Klopfenstein, Ashley
title Investment Income in Life Insurance
title_short Investment Income in Life Insurance
title_full Investment Income in Life Insurance
title_fullStr Investment Income in Life Insurance
title_full_unstemmed Investment Income in Life Insurance
title_sort investment income in life insurance
publisher Marietta College Honors Theses / OhioLINK
publishDate 2020
url http://rave.ohiolink.edu/etdc/view?acc_num=marhonors1588419641715527
work_keys_str_mv AT klopfensteinashley investmentincomeinlifeinsurance
_version_ 1719457136036020224

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