In this paper we investigate the relationship between home-market performance and the choice of foreign market entry mode using survey data and financial statement data of German insurance groups with property-liability business for the years 1999 to 2009. We develop a dynamic resource-based perspective and argue that strategic transformation is a major motive driving insurance groups' internationalization. Additionally, the more rapid the change for strategic transformation is, the more intense is the insurance groups' market entry mode choice. Furthermore, our findings corroborate the notion that internationalization has a positive effect on home-market performance when insurance groups are able to generate increasing premium volumes in foreign markets. JEL Classifications: G22, L25, F23