Article
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Preserved in Portico This version is not peer-reviewed
Effects from ESG Scores on P&C Insurance Companies
Version 1
: Received: 18 July 2023 / Approved: 18 July 2023 / Online: 19 July 2023 (09:32:06 CEST)
A peer-reviewed article of this Preprint also exists.
Bressan, S. Effects from ESG Scores on P&C Insurance Companies. Sustainability 2023, 15, 12644. Bressan, S. Effects from ESG Scores on P&C Insurance Companies. Sustainability 2023, 15, 12644.
Abstract
Insurers act as institutional investors and underwriters of risk, therefore improving their own environmental, social, and governance (ESG) performance is important for the transmission of ESG values to all other economic sectors. We analyze ESG scores of worldwide Property and Casualty (P&C) insurers during 2012-2022, and show that more sustainable insurers have high operating leverage, although their combined ratios and z-scores reveal that they are financially stable. Additional results for the US subsample illustrate that stocks issued by sustainable insurers deliver positive excess returns. Overall, these findings suggest that sustainable practices are associated with the ability of insurers to execute business and create value.
This is important for insurance managers, investors, and policy makers, as insurers play a prominent role in promoting economic growth and stability.
Keywords
insurance; ESG; sustainability
Subject
Business, Economics and Management, Finance
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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