Ownership Structure Changes in the Insurance Industry: An Analysis of Demutualization

Journal of Risk and Insurance

Volumn 70, Issue 3, 2003, Pages 401-437

  Viswanathan, Krupa S ^a   Cummins, J David ^b  

^a TEMPLE UNIVERSITY   (United States)

^b UNIVERSITY OF PENNSYLVANIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0242330727     PISSN: 00224367     EISSN: None     Source Type: Journal    
DOI: 10.1111/1539-6975.t01-1-00058     Document Type: Article

References (57)

1. Adkins, J. B., 1997, The Policyholder Perspective on Mutual Holding Company Conversions, Journal of Insurance Regulation, 16: 5-15.
2. Babbel, D. F., and R. B. Jones, 1988, Not Whether, But When, Best's Review - Life/Health, January: 54-60.
3. Bailey, S., 1995, Advocates Hit Insurer's Plan to Demutualize, The Boston Globe, March 2, 33.
4. BarNiv, R., and R. A. Hershbarger, 1990, Classifying Financial Distress in the Life Insurance Industry, Journal of Risk and Insurance, 57: 110-136.
5. Black, K., and H. D. Skipper, 2000, Life & Heath Insurance (Upper Saddle River: Prentice Hall).
6. Boose, M. A., 1990, Agency Theory and Alternative Prediction for Life Insurers: An Empirical Test, Journal of Risk and Insurance, 57: 499-518.
7. Cagle, J. A. B., R. L. Lippert, and W. T. Moore, 1996, Demutualization in the Property-Liability Insurance Industry, Journal of Insurance Regulation, 14: 343-369.
8. Carroll, C., and J. P. Duran, 1997, Closed Blocks and Mutual Company Conversions, The Financial Reporter, June, 3-6.
9. Carow, K. A., 2001, The Wealth Effects of Allowing Bank Entry Into the Insurance Industry, Journal of Risk and Insurance, 68: 129-150.
10. Carson, J. M., M. D. Forster, and M. J. McNamara, 1998, Changes in Ownership Structure: Theory and Evidence from Life Insurer Demutualizations, Journal of Insurance Issues, 21:1-22.
11. Clinton, E. X., 1992, The Rights of Policyholders in an Insurance Demutualization, Drake Law Review, 41: 657-704.
12. Cohen, M. A., C. J. Crosson, and L. A. Sgarlata, 1999, Globalization Transforms the Industry, Best's Review - Life/Health, September: 61-68.
13. Cohen, M. A., L. G. Mayewski, and M. L. Albanese, 1998, End of An Era?, Best's Review - Property/Casualty, August: 75-82.
14. Cole, C. S., M. J. McNamara, and B. P. Wells, 1995, Demutualizations and Free Cash Flow, Journal of Insurance Issues, 18: 37-56.
15. Cummins, J. D., and P. M. Danzon, 1997, Price Shocks and Capital Flows in Liability Insurance, Journal of Financial Intermediation, 6: 3-38.
16. Cummins, J. D., S. Tennyson, and M. A. Weiss, 1999a, Consolidation and Efficiency in the U.S. Life Insurance Industry, Journal of Banking and Finance, 23: 325-357.
17. Cummins, J. D., S. Tennyson, and M. A. Weiss, 1999b, Life Insurer Mergers and Acquisitions, in: J. D. Cummins and A. M. Santomero, eds., Changes in the Life Insurance Industry: Efficiency, Technology, and Risk Management (Norwell, MA: Kluwer).
18. Cummins, J. D., M. A. Weiss, and H. Zi, 1999, Organizational Form and Efficiency: An Analysis of Stock and Mutual Property-Liability Insurers, Management Science, 45: 1254-1269.
19. Dauer, A. C., 1998, MONY Pleads Case for Going Public, Journal of Commerce, October 26, 8A.
20. Dumm, R. E., and R. E. Hoyt, 1999, Surplus Note Utilization by Life Insurers: Empirical Evidence, Journal of Insurance Regulation, 17: 348-378.
21. Fama, E., and M. Jensen, 1983, Agency Problems and Residual Claims, Journal of Law and Economics, 26: 327-349.
22. Fox-Pitt, K., 1998, Mutual Insurance Companies, in Corporate Finance Outlook (New York, NY).
23. Garven,. J. R., and S. W. Pettier, 1995, Incentive Contracting and the Role of Participation Rights in Stock Insurers, Journal of Risk and Insurance, 62: 253-270.
24. Goldstein, J., and T. Avril, 1998, Prudential Plans Conversion to Publicly Traded Company, The Philadelphia Inquirer, February 13.
25. Greene, M. R., and R. E. Johnson, 1980, Stocks vs. Mutuals: Who Controls? Journal of Risk and Insurance, 47: 165-174.
26. Halverstadt, D. L., 1998, Demutualization - An Ongoing Trend and One with Mixed Implications for Surplus Note Holders (New York: Goldman Sachs Fixed Income Research).
27. Hansmann, H., 1985, The Organization of Insurance Companies: Mutual Versus Stock, Journal of Law, Economics and Organization, 1: 125-153.
28. Hartford Pulls Back from International Reinsurance, Sells Stock, BestWire, October 18, 2001.
29. Harrington, S. E., and G. Niehaus, 2002, Capital Structure Decisions in the Insurance Industry: Stocks versus Mutuals, Journal of Financial Services Research, 21(1-2): 145-163.
30. Hetherington, J. A. C., 1969, Fact vs. Fiction: Who Owns Mutual Life Insurance Companies, Wisconsin Law Review, 4: 1068-1103.
31. Hitt, L. M., 1999, The Impact of Information Technology Practices on the Performance of Life Insurance Companies, in: J. D. Cummins and A. M. Santomero, eds., Changes in the Life Insurance Industry: Efficiency, Technology, and Risk Management (Norwell, MA: Kluwer).
32. Insurers Tap Wall Street for $4 Billion, The Insurance Accountant, November 6, 1995, 1.
33. Jensen, M., and W. Meckling, 1976, Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics, 3: 305-360.
34. Koeppel, J. A., 1998, Refuting the Myths about Mutual Holding Companies, Best's Review - Life/Health, February: 52-53.
35. Krishnaswami, S., and S. Pettier, 2001, Agency Theory and Participating Policy Usage Evidence from Stock Life Insurers, Journal of Risk and Insurance, 68: 659-684.
36. Kroll, M. P., P. Wright, and P. Theerathorn, 1993, Whose Interests Do Hired Top Managers Pursue? An Examination of Select Mutual and Stock Life Insurers, Journal of Business Research, 26: 133-148.
37. Lamm-Tenant, J., and L. Starks, 1993, Stock versus Mutual Ownership Structures: The Risk Implications, Journal of Business, 66: 29-46.
38. Lee, S., D. Mayers, and C. Smith, 1997, Guaranty Funds and Risk-Taking - Evidence from the Insurance Industry, Journal of Financial Economics, 44: 3-24.
39. Masulis, R. W., 1987, Changes in Ownership Structure: Conversion of Mutual Savings and Loans to Stock Charter, Journal of Financial Economics, 18: 29-59.
40. Mayers, D., and C. Smith, 1981, Contractual Provisions. Organizational Structure and Conflict Control in Insurance Markets, Journal of Business, 54: 407-434.
41. Mayers, D., and C. Smith, 1988, Ownership Structure across Lines of Property-Casualty Insurance, Journal of Law and Economics, 31: 351-378.
42. Mayers, D., and C. Smith, 1996, Incentives for Accounting Information Production: Property-Casualty Insurer Stock-Charter Conversion, Working paper, University of Rochester.
43. Mayers, D., and C. Smith, 2002, Ownership Structure and Control: Property-Casualty Insurer Conversion to Stock Charter, Journal of Financial Services Research, 21(1-2): 117-144.
44. McNamara, M., and S. G. Rhee, 1992, Ownership Structure and Performance: The Demutualization of Life Insurers, Journal of Risk and Insurance, 59: 221-238.
45. McDonald, L., C. Saucer, and C. Winans, 1997, Taking Stock, Best's Review - Property/Liability, December: 76-80.
46. National Association of Insurance Commissioners, 1998, Demutualization of Insurance Companies, in NAIC Compendium of State Laws on Insurance Topics, CS-20 (Kansas City, MO).
47. Pottier, S., and D. Sommer, 1997, Agency Theory and Life Insurer Ownership Structure, Journal of Risk and Insurance, 64: 529-543.
48. Report by the Assembly Standing Committee on Insurance: The Feeling's Not Mutual. By A. B. Grannis, chairman. Albany: New York State Assembly, 1998.
49. Santomero, A. M., 1999, Life Insurance: The State of the Industry, in J. D. Cummins and A. M. Santomero, eds., Changes in the Life Insurance Industry: Efficiency, Technology, and Risk Management (Norwell, MA: Kluwer).
50. Santomero, A. M., and D. F. Babbel, 1997, Financial Risk Management by Insurers: An Analysis of the Process, Journal of Risk and Insurance, 64: 231-270.
51. Schiff, D., 1998, The Big Fix: Mutual Insurance Holding Companies, Schiffs Insurance Observer, February, 8-11.
52. Smith, B. D., and M. Stutzer, 1990, Adverse Selection, Aggregate Uncertainty, and the Role for Mutual Insurance Contracts, Journal of Business, 63: 493-510.
53. Smith, B. D., and M. Stutzer, 1995, A Theory of Mutual Formation and Moral Hazard with Evidence from the History of the Insurance Industry, Review of Financial Studies, 8: 545-577.
54. Swiss Re, 1999, Are Mutual Insurers An Endangered Species, Sigma, no. 4.
55. Tuohy, M., 1999, Challenges and Issues for Growth in the Life Insurance Industry, in: J. D. Cummins and A. M. Santomero, eds., Changes in the Life Insurance Industry: Efficiency, Technology, and Risk Management (Norwell, MA: Kluwer).
56. Vader, R. A., and A. M. Clark, 1999, Compensating Policyholders, Best's Review - Life/Health, May: 62-63.
57. Williamson, O. E., 1963, Managerial Discretion and Business Behavior, American Economic Review, 53: 1032-1057.