Abstract: Based on the panel data of Chinese property insurance companies from 2010 to 2018, this paper uses simultaneous equation model and threshold regression model to study the interaction and threshold effect among capital adjustments, risk-taking and reinsurance levels, and conducts a robustness test and heterogeneity analysis. The study finds that capital adjustment has a significant negative impact on investment risk; reinsurance level has a significant negative impact on capital adjustment; the relationship among capital adjustment, investment risk and underwriting risk has a single threshold effect. But there is no threshold effect in the relationship between capital adjustment and risk-taking on reinsurance. The results show that the interactive relationship between capital adjustment and underwriting risks needs to be strengthened, the role of "contingent capital" in reinsurance needs to be deepened, and the differentiated regulatory system needs to be improved.

Key words: capital adjustment, investment risk, underwriting risk, reinsurance, threshold effect