Corporate Diversification, Ownership, and Solvency in China’s Property-Liability Insurance Companies

Table 2

The impact of business diversification on solvency.

Variable	Full sample	Chinese-funded	Foreign-funded
	(1)	(2)	(3)
L.sol	0.037	0.008	0.042
	(37.615)	(6.546)	(19.024)
Prodiv	6.240	5.719	-10.870
	(2.194)	(4.391)	(-2.875)
Size	4.541	4.852	0.389
	(5.568)	(16.663)	(0.293)
Age	−11.260	−13.771	−10.768
	(−8.909)	(−18.773)	(−7.177)
Loss	1.906	7.104	2.083
	(9.981)	(6.219)	(0.902)
Rein	11.599	12.859	41.641
	(2.447)	(5.804)	(7.244)
ms	−83.371	−134.467	−1,033.972
	(−1.217)	(−2.996)	(−0.414)
Investrisk	−3.271	1.992	−15.813
	(−2.297)	(4.659)	(−1.298)
gdp	29.242	−109.412	147.254
	(1.278)	(−6.250)	(6.204)
Constant	−10.615	−5.967	19.370
	(−1.962)	(−1.942)	(3.223)
N	268	170	98
AR (2) test	(0.562)	(0.910)	(0.875)
Sargan test	(0.070)	(0.090)	(0.954)

Note. ∗∗∗ means , ∗∗ means , and ∗ means .