Impact of Green Bond Policies on Insurers: Evidence from the European Equity Market

This article empirically investigates whether the introduction of green bond policies by insurance companies have a positive impact on their equity prices. To this aim, the sample of listed (re)insurers in Europe using monthly data for years 2012 – 2019 is employed. Announcements, press releases and semi-annual or annual reports are used to determine when the insurance companies committed to a green investment, issuance of green bonds or launching a green fund. Our results suggest that market investors positively price introducing such a policies for the issuance of green bonds or launching a green fund. However, the same results were not confirmed for initial investments in green bonds.