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Insurers' M&As in the United States during the 1990‒2022 period: Is the Fed monetary policy a causal factor?

Author

Listed:
  • Georges Dionne
  • Akouété‐Tognikin Fenou
  • Mohamed Mnasri

Abstract

We investigate the causes of the gap in mergers and acquisitions (M&As) between life and nonlife insurers in the United States from 1990 to 2022. Our causality analysis indicates parallel trends between M&As in the life insurance and nonlife insurance sectors from 1990 to 2012, and a significant difference after 2012. There was a shock in the life insurance market that resulted in a reduction in M&As after 2012. Variable annuity sales and profitability in the life insurance sector declined after 2012. We find evidence that low interest rates observed after the implementation of the Fed's quantitative easing policy from 2008 to 2012 caused the difference in M&As between the life and nonlife sectors after 2012.

Suggested Citation

  • Georges Dionne & Akouété‐Tognikin Fenou & Mohamed Mnasri, 2025. "Insurers' M&As in the United States during the 1990‒2022 period: Is the Fed monetary policy a causal factor?," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 28(4), pages 609-642, December.
    • Handle: RePEc:bla:rmgtin:v:28:y:2025:i:4:p:609-642
    DOI: 10.1111/rmir.70024
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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