Review of Business and Economic Literature vol:58 issue:4 pages:286-307
Abstract: This paper aims to provide a summary of the extant literature on the financing choices of insurers. We first take a closer look at the balance sheet of insurers and subsequently summarize general models of financing decisions and how the literature relates these to the specificities of an insurer’s balance sheet. Next, traditional firm-specific factors that have been shown to be important in explaining financing choices are summed up and we go over the literature that places them within the context of an insurer. In a final part, we focus on some specific factors, that have been identified in the literature as affecting financing of insurers.