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Ownership and Performance: Stock and Mutual Life Insurance Companies: Comment.

Authors :
Neumann, Seev
Rejda, George
Prichett, Travis S.
Source :
Journal of Risk & Insurance; Dec73, Vol. 40 Issue 4, p631-635, 5p
Publication Year :
1973

Abstract

This article presents views on the assertion made that different performance characteristics of stock and mutual life insurance companies are caused by the difference in the two ownership types. It is contended that the sample presented enables application of statistical inference to the population of stock and mutual life insurance companies operating under New York State regulations. One is inclined to argue that statistical inference cannot be applied here, because the companies investigated do not comprise a sample, but a census of all typical life insurance companies licensed in the New York State. The said sample: excludes new companies, namely, those which had less than fifteen years of operation prior to 1952; excludes atypical firms, namely, those limited to certain customer groups or certain products; and it includes all other companies licensed in New York. The omission of new companies may be critical. On the one hand, one of the main reasons for undertaking the study was the rapid increase in the market share of stock companies. On the other hand, it is suggested that some of the change in the relative position of stocks and mutuals may be attributed to the many new stock companies which began operations during the years covered.

Details

Language :
English
ISSN :
00224367
Volume :
40
Issue :
4
Database :
Complementary Index
Journal :
Journal of Risk & Insurance
Publication Type :
Academic Journal
Accession number :
5136954
Full Text :
https://doi.org/10.2307/251946