New Mathematics Study Findings Reported from School of Finance (Corporate Diversification, Ownership, and Solvency in China’s Property-Liability Insurance Companies): Mathematics

2022 JAN 14 (NewsRx) -- By a News Reporter-Staff News Editor at Math Daily News -- Current study results on mathematics have been published. According to news reporting from the School of Finance by NewsRx journalists, research stated, “Solvency is the premise of the sustainable management of insurance companies.”

Funders for this research include Humanities and Social Science Fund of Ministry of Education of China.

Our news journalists obtained a quote from the research from School of Finance: “Among factors that affect the solvency of insurance companies, diversification strategy is one that cannot be ignored. To study the impact of diversification on the solvency of property-liability insurance companies and how diversification will influence companies with different ownership, this paper adopts the dynamic panel GMM model and the unbalanced panel data from 2009 to 2015. The analysis is from two dimensions: product diversification and geographic diversification. Empirical study shows that product diversification will increase the solvency of Chinese-funded property-liability insurance companies but reduce the solvency of foreign-funded ones. As for the impact of geographic diversification on solvency, the more geographically diversified the premium income of Chinese-funded property-liability insurance companies are, the lower their solvency will be.”

According to the news reporters, the research concluded: “However, geographical expansion has no significant solvency-related impact on foreign-funded property-liability insurance companies in China.”

For more information on this research see: Corporate Diversification, Ownership, and Solvency in China’s Property-Liability Insurance Companies. Mathematical Problems in Engineering, 2021,2021. (Mathematical Problems in Engineering - https://www.hindawi.com/journals/mpe/). The publisher for Mathematical Problems in Engineering is Hindawi Limited.

A free version of this journal article is available at https://doi.org/10.1155/2021/1562771.

Our news editors report that additional information may be obtained by contacting Shuang Wu, School of Finance.

(Our reports deliver fact-based news of research and discoveries from around the world.)