The study looked at how European insurance companies using enterprise risk management (ERM) perform. They found that firms using ERM see better results and lower risks. Factors like company size, transparency, and external monitoring influence ERM adoption. ERM helps reduce overall risks and specific risks for these firms. Things like company size, debt levels, and diversification affect how much risk is reduced. Dividend payments can signal a company's efforts to lower risk. Overall, ERM adoption can lead to improved performance and reduced risks for European insurance firms.