TY - JOUR AB - Purpose The purpose of this study is to analyze product diversification, business structure and insurer performance with a comprehensive look at the property-liability (P/L) insurance operations.Design/methodology/approach Using a panel data, this study employs an ordinary least squares regression model, fixed effects model and random effects model to examine the impact of product diversification and business structure on the performance of P/L insurers. The study assesses insurer performance using both risk-adjusted return on assets and risk-adjusted return on equity.Findings The study finds that product diversification is significantly negatively related to the performance of P/L insurers. The results are consistent with the diversification discount theory. The empirical results reveal that business lines have significant impacts on firm performance, particularly on the lines of fire and marine insurances. Furthermore, the interaction between product diversification and firm size implies that product diversification significantly increases the performance of large-sized insurance firms.Originality/value The study provides some valuable insights into the effects of diversification and business structure on the performance of P/L insurers in a developing country. The study’s findings suggest that management of P/L insurers should clarify their objectives and carefully assess the company’s resources when dealing with product diversification and business structure. The results have practical implications for the financial services industry in Taiwan. VL - 18 IS - 5 SN - 1526-5943 DO - 10.1108/JRF-07-2016-0092 UR - https://doi.org/10.1108/JRF-07-2016-0092 AU - Lee Chen-Ying PY - 2017 Y1 - 2017/01/01 TI - Product diversification, business structure, and firm performance in Taiwanese property and liability insurance sector T2 - The Journal of Risk Finance PB - Emerald Publishing Limited SP - 486 EP - 499 Y2 - 2024/03/19 ER -