Diversification, Performance and Risk Taking of Insurance Company

this paper constructed economitric model to measure the impact of diversification on performance and risk taking of insurance company, through empirical analysis, we got the following two conclusions: (1) for the property and casualty insurance companies, diversification has significant "U" and "inverted U" shape relationship with risk-taking and performance. diversification caused risk level first decreased then increased; and caused performance first decreased then increasing; (2) for the life insurance company, from a total sample of view, diversification did not significantly affect performance and risk taking. But for a small insurance companies, diversification and performance had significantly positive correlation, the main motivation of diversification for the property and casualty insurance companies is to increase revenue through economic.