Consolidation and efficiency in the US life insurance industry
This paper examines the relationship between mergers and acquisitions, efficiency, and scale economies in the US life insurance industry. We estimate cost and revenue efficiency over the period 1988–1995 using data envelopment analysis (DEA). The Malmquist methodology is used to measure changes in e...
Gespeichert in:
| Veröffentlicht in: | Journal of banking & finance 1999-02, Vol.23 (2), p.325-357 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 357 |
|---|---|
| container_issue | 2 |
| container_start_page | 325 |
| container_title | Journal of banking & finance |
| container_volume | 23 |
| creator | Cummins, J.David Tennyson, Sharon Weiss, Mary A. |
| description | This paper examines the relationship between mergers and acquisitions, efficiency, and scale economies in the US life insurance industry. We estimate cost and revenue efficiency over the period 1988–1995 using data envelopment analysis (DEA). The Malmquist methodology is used to measure changes in efficiency over time. We find that acquired firms achieve greater efficiency gains than firms that have not been involved in mergers or acquisitions. Firms operating with non-decreasing returns to scale (NDRS) and financially vulnerable firms are more likely to be acquisition targets. Overall, mergers and acquisitions in the life insurance industry have had a beneficial effect on efficiency. |
| doi_str_mv | 10.1016/S0378-4266(98)00089-2 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_194882709</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><els_id>S0378426698000892</els_id><sourcerecordid>40082675</sourcerecordid><originalsourceid>FETCH-LOGICAL-c653t-c9c19a6339181d0aa5afc3bc4fadb1795d6b81705e14272fd629bd2e4dd1dfbe3</originalsourceid><addsrcrecordid>eNqFkEtLAzEUhYMoWKs_QRhc6WI0j3kkG0WKLyi4qF1fMskNTWlnajIt9N-bacWti_tIOOckfIRcM3rPKKseZlTUMi94Vd0qeUcplSrnJ2TEZM3zStT8lIz-JOfkIsYlHVRMjMjjpGtjt_JW975rM93aDJ3zxmNr9plvs36B2XyWrbzDdIzboFszbHYb-7C_JGdOryJe_c4xmb--fE3e8-nn28fkeZqbqhR9bpRhSldCKCaZpVqX2hnRmMJp27BalbZqJKtpiazgNXe24qqxHAtrmXUNijG5OeZuQve9xdjDstuGNj0JTBVS8pqqJCqPIhO6GAM62AS_1mEPjMJACg6kYMAASsKBFPDkmx59ATdo_kyIuGycbzXsQGguUtunYkqpNPxwB0Xqm1SClyDKGhb9OsU9HeMwAdl5DBAPONH6gKYH2_l_PvQDZJOJ-g</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>194882709</pqid></control><display><type>article</type><title>Consolidation and efficiency in the US life insurance industry</title><source>RePEc</source><source>Elsevier ScienceDirect Journals</source><creator>Cummins, J.David ; Tennyson, Sharon ; Weiss, Mary A.</creator><creatorcontrib>Cummins, J.David ; Tennyson, Sharon ; Weiss, Mary A.</creatorcontrib><description>This paper examines the relationship between mergers and acquisitions, efficiency, and scale economies in the US life insurance industry. We estimate cost and revenue efficiency over the period 1988–1995 using data envelopment analysis (DEA). The Malmquist methodology is used to measure changes in efficiency over time. We find that acquired firms achieve greater efficiency gains than firms that have not been involved in mergers or acquisitions. Firms operating with non-decreasing returns to scale (NDRS) and financially vulnerable firms are more likely to be acquisition targets. Overall, mergers and acquisitions in the life insurance industry have had a beneficial effect on efficiency.</description><identifier>ISSN: 0378-4266</identifier><identifier>EISSN: 1872-6372</identifier><identifier>DOI: 10.1016/S0378-4266(98)00089-2</identifier><identifier>CODEN: JBFIDO</identifier><language>eng</language><publisher>Amsterdam: Elsevier B.V</publisher><subject>Acquisitions & mergers ; Changes ; Data envelopment analysis ; Efficiency ; Hypotheses ; Insurance industry ; Life insurance ; Life insurance companies ; Mergers and acquisitions ; Regression analysis ; Scale economies ; Studies</subject><ispartof>Journal of banking & finance, 1999-02, Vol.23 (2), p.325-357</ispartof><rights>1999 Elsevier Science B.V.</rights><rights>Copyright Elsevier Sequoia S.A. Feb 1999</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c653t-c9c19a6339181d0aa5afc3bc4fadb1795d6b81705e14272fd629bd2e4dd1dfbe3</citedby><cites>FETCH-LOGICAL-c653t-c9c19a6339181d0aa5afc3bc4fadb1795d6b81705e14272fd629bd2e4dd1dfbe3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktohtml>$$Uhttps://dx.doi.org/10.1016/S0378-4266(98)00089-2$$EHTML$$P50$$Gelsevier$$H</linktohtml><link.rule.ids>314,777,781,3537,3994,27905,27906,45976</link.rule.ids><backlink>$$Uhttp://econpapers.repec.org/article/eeejbfina/v_3a23_3ay_3a1999_3ai_3a2-4_3ap_3a325-357.htm$$DView record in RePEc$$Hfree_for_read</backlink></links><search><creatorcontrib>Cummins, J.David</creatorcontrib><creatorcontrib>Tennyson, Sharon</creatorcontrib><creatorcontrib>Weiss, Mary A.</creatorcontrib><title>Consolidation and efficiency in the US life insurance industry</title><title>Journal of banking & finance</title><description>This paper examines the relationship between mergers and acquisitions, efficiency, and scale economies in the US life insurance industry. We estimate cost and revenue efficiency over the period 1988–1995 using data envelopment analysis (DEA). The Malmquist methodology is used to measure changes in efficiency over time. We find that acquired firms achieve greater efficiency gains than firms that have not been involved in mergers or acquisitions. Firms operating with non-decreasing returns to scale (NDRS) and financially vulnerable firms are more likely to be acquisition targets. Overall, mergers and acquisitions in the life insurance industry have had a beneficial effect on efficiency.</description><subject>Acquisitions & mergers</subject><subject>Changes</subject><subject>Data envelopment analysis</subject><subject>Efficiency</subject><subject>Hypotheses</subject><subject>Insurance industry</subject><subject>Life insurance</subject><subject>Life insurance companies</subject><subject>Mergers and acquisitions</subject><subject>Regression analysis</subject><subject>Scale economies</subject><subject>Studies</subject><issn>0378-4266</issn><issn>1872-6372</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1999</creationdate><recordtype>article</recordtype><sourceid>X2L</sourceid><recordid>eNqFkEtLAzEUhYMoWKs_QRhc6WI0j3kkG0WKLyi4qF1fMskNTWlnajIt9N-bacWti_tIOOckfIRcM3rPKKseZlTUMi94Vd0qeUcplSrnJ2TEZM3zStT8lIz-JOfkIsYlHVRMjMjjpGtjt_JW975rM93aDJ3zxmNr9plvs36B2XyWrbzDdIzboFszbHYb-7C_JGdOryJe_c4xmb--fE3e8-nn28fkeZqbqhR9bpRhSldCKCaZpVqX2hnRmMJp27BalbZqJKtpiazgNXe24qqxHAtrmXUNijG5OeZuQve9xdjDstuGNj0JTBVS8pqqJCqPIhO6GAM62AS_1mEPjMJACg6kYMAASsKBFPDkmx59ATdo_kyIuGycbzXsQGguUtunYkqpNPxwB0Xqm1SClyDKGhb9OsU9HeMwAdl5DBAPONH6gKYH2_l_PvQDZJOJ-g</recordid><startdate>19990201</startdate><enddate>19990201</enddate><creator>Cummins, J.David</creator><creator>Tennyson, Sharon</creator><creator>Weiss, Mary A.</creator><general>Elsevier B.V</general><general>Elsevier</general><general>Elsevier Sequoia S.A</general><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>19990201</creationdate><title>Consolidation and efficiency in the US life insurance industry</title><author>Cummins, J.David ; Tennyson, Sharon ; Weiss, Mary A.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c653t-c9c19a6339181d0aa5afc3bc4fadb1795d6b81705e14272fd629bd2e4dd1dfbe3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1999</creationdate><topic>Acquisitions & mergers</topic><topic>Changes</topic><topic>Data envelopment analysis</topic><topic>Efficiency</topic><topic>Hypotheses</topic><topic>Insurance industry</topic><topic>Life insurance</topic><topic>Life insurance companies</topic><topic>Mergers and acquisitions</topic><topic>Regression analysis</topic><topic>Scale economies</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Cummins, J.David</creatorcontrib><creatorcontrib>Tennyson, Sharon</creatorcontrib><creatorcontrib>Weiss, Mary A.</creatorcontrib><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of banking & finance</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Cummins, J.David</au><au>Tennyson, Sharon</au><au>Weiss, Mary A.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Consolidation and efficiency in the US life insurance industry</atitle><jtitle>Journal of banking & finance</jtitle><date>1999-02-01</date><risdate>1999</risdate><volume>23</volume><issue>2</issue><spage>325</spage><epage>357</epage><pages>325-357</pages><issn>0378-4266</issn><eissn>1872-6372</eissn><coden>JBFIDO</coden><abstract>This paper examines the relationship between mergers and acquisitions, efficiency, and scale economies in the US life insurance industry. We estimate cost and revenue efficiency over the period 1988–1995 using data envelopment analysis (DEA). The Malmquist methodology is used to measure changes in efficiency over time. We find that acquired firms achieve greater efficiency gains than firms that have not been involved in mergers or acquisitions. Firms operating with non-decreasing returns to scale (NDRS) and financially vulnerable firms are more likely to be acquisition targets. Overall, mergers and acquisitions in the life insurance industry have had a beneficial effect on efficiency.</abstract><cop>Amsterdam</cop><pub>Elsevier B.V</pub><doi>10.1016/S0378-4266(98)00089-2</doi><tpages>33</tpages><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0378-4266 |
| ispartof | Journal of banking & finance, 1999-02, Vol.23 (2), p.325-357 |
| issn | 0378-4266 1872-6372 |
| language | eng |
| recordid | cdi_proquest_journals_194882709 |
| source | RePEc; Elsevier ScienceDirect Journals |
| subjects | Acquisitions & mergers Changes Data envelopment analysis Efficiency Hypotheses Insurance industry Life insurance Life insurance companies Mergers and acquisitions Regression analysis Scale economies Studies |
| title | Consolidation and efficiency in the US life insurance industry |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-17T13%3A31%3A27IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Consolidation%20and%20efficiency%20in%20the%20US%20life%20insurance%20industry&rft.jtitle=Journal%20of%20banking%20&%20finance&rft.au=Cummins,%20J.David&rft.date=1999-02-01&rft.volume=23&rft.issue=2&rft.spage=325&rft.epage=357&rft.pages=325-357&rft.issn=0378-4266&rft.eissn=1872-6372&rft.coden=JBFIDO&rft_id=info:doi/10.1016/S0378-4266(98)00089-2&rft_dat=%3Cproquest_cross%3E40082675%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=194882709&rft_id=info:pmid/&rft_els_id=S0378426698000892&rfr_iscdi=true |