Insurance companies with higher volatility in their underwriting incomes tend to be more cautious in their investment decisions. They have lower exposure to risky bonds and stocks in their portfolios. The level of risk in their underwriting income affects their investment behavior, with permanent income shocks having a bigger impact than temporary ones. When facing financial constraints, temporary income shocks become more important in determining their investment risk. Overall, the risk of operating their business affects how risky their investment choices are.