Actuarial Risk Management Practices and Financial Performance of Property and Casualty Insurance Firms: Identification of a Moderating Variable
Mirie Mwangi, PhD; Caren B. Angima, MBA, PhD Candidate

Abstract
The purpose of the study was to establish, through literature review, the factors that moderate the relationship between actuarial risk management practices and financial performance of property and casualty insurance underwriters. Three theories that are considered useful in the identification of possible moderating variables were briefly reviewed. These are expected utility theory, credibility theory and ruin theory or collective risk theory.The findings revealed that various firm specific factors moderate this relationship. They include growth rate, size, and age of the firms, and in addition soundness of company management.

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