Article1994

Using Best's Ratings in Life Insurer Insolvency Prediction

58 citations0/0 files storedJournal of Risk & Insurance

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Distress and Bankruptcy Prediction Insurance and Financial Risk Management Corporate Insolvency and Governance

Abstract

This article examines the efficiency of Best's recommendations, Insurance Regulatory Information System (IRIS) ratios, and other financial measures in their statistical ability to classify solvent and insolvent life insurers by estimating classification models for a sample of insurers for 1969 through 1986 and applying the models to a holdout sample for 1987 through 1991. The financial variables and IRIS ratios outperformed Best's recommendations in distinguishing between the two groups in a logit model. However, combining all three types of predictors into one model provided the most accurate classification of solvent or insolvent life insurers.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 58 citations exist upstream.

References

1983Limited-dependent and qualitative variables in econometrics 1980Financial Ratios and the Probabilistic Prediction of Bankruptcy 1986Predicting takeover targets 1992Identifying Financial Distress in the Insurance Industry: A Synthesis of Methodological and Empirical Issues 1988Best's Ratings, Financial Ratios and Prior Probabilities in Insolvency Prediction 1991Classifying Financial Distress in the Life Insurance Industry

Cited by

2010Effects of Analysts’ Ratings on Insurer Stock Returns: Evidence of Asymmetric Responses 1998Life Insurer Financial Distress, Best's Ratings and Financial Ratios 2005Machine Learning and Statistical Techniques. An Application to the Prediction of Insolvency in Spanish Non-life Insurance Companies 2004Feature selection methods involving support vector machines for prediction of insolvency in non‐life insurance companies 2022Predicting Insolvency of Insurance Companies in Egyptian Market Using Bagging and Boosting Ensemble Techniques 2000A Semiparametric Stochastic Spline Model as a Managerial Tool for Potential Insolvency

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.