Abstract

Journal of Actuarial Practice

Volume 4, Number 1, 1996


Concentration in American Property-Casualty Companies

Edward Nissan

Abstract

A Theil’s entropy index utilizing premiums written as units is employed to measure trends in concentration of the largest 200 property-casualty companies in the United States between 1985 and 1993 based on {\em Best’s Insurance Report} data. Each of the indexes confirms that concentration trends experienced no increase for the whole period for all 200 firms, the top 20, and subsets of lower ranked companies. Significant differences are observed, however, between groups of companies for the same period.

Key words and phrases: mergers and acquisitions, Theil's entropy, insurance

Edward Nissan
Department of Economics and International Business,
University of Southern Mississippi,
P.O.\ Box 5072,
Southern Station,
Hattiesburg, MS 39406
USA


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