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The gradual evolution of the insurance industry from a largely multi-domestic to a global industry has driven many insurers to acquire firms globally. This study focuses on international acquisitions that took place in the insurance sector by U.S.-based firms in the years 2008-2016 and their impact on shareholder wealth.
Overall results of this study show that firms undertaking overseas acquisitions face statistically insignificant negative market returns, indicating the market neither rewards nor penalizes such firms. The market returns faced by firms during such acquisitions tend to vary by the degree of wealth of the host country, amount of bilateral trade between host and home country, and extent of potential liabilities of foreignness faced by the firm.