Ownership Structure and Control: Property-Casualty Insurer Conversion to Stock Charter

This paper examines property-casualty insurance companies that convert to stock charter from a mutual or reciprocal form of organization. Evidence shows converting firms have low surplus, significant growth in premium income, and draw down on their non-financial assets in years prior to conversion. Following conversion their is significant growth in assets and the number of States licensed. The evidence suggests there can be important costs associated with the operation of a mutual or reciprocal insurance company.