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This paper considers the optimal dividend payment problem in piecewise-deterministic compound Poisson risk models. The objective is to maximize the expected discounted dividend payout up to the time of ruin. We provide a comparative study…

Optimization and Control · Mathematics 2016-08-02 Runhuan Feng , Hans Volkmer , Shuaiqi Zhang , Chao Zhu

In this paper we consider dividend problem for an insurance company whose risk evolves as a spectrally negative L\'{e}vy process (in the absence of dividend payments) when Parisian delay is applied. The objective function is given by the…

Portfolio Management · Quantitative Finance 2011-10-19 Irmina Czarna , Zbigniew Palmowski

We consider de Finetti's optimal dividends problem with absolutely continuous strategies in a spectrally negative L\'evy model with Parisian ruin as the termination time. The problem considered is essentially a generalization of both the…

Probability · Mathematics 2024-07-30 Félix Locas , Jean-François Renaud

This paper studies the optimal dividend for a multi-line insurance group, in which each subsidiary runs a product line and is exposed to some external credit risk. The default contagion is considered such that one default event may increase…

Risk Management · Quantitative Finance 2020-10-30 Zhuo Jin , Huafu Liao , Yue Yang , Xiang Yu

This paper concerns the dual risk model, dual to the risk model for insurance applications, where premiums are surplus-dependent. In such a model premiums are regarded as costs, while claims refer to profits. We calculate the mean of the…

Pricing of Securities · Quantitative Finance 2016-05-17 Ewa Marciniak , Zbigniew Palmowski

We study the problem of optimal risk policies and dividend strategies for an insurance company operating under the constraint that the timing of shareholder payouts is governed by the arrival times of a Poisson process. Concurrently, risk…

Optimization and Control · Mathematics 2025-02-19 Mark Kelbert , Harold A. Moreno-Franco

In this paper, we consider the optimal dividend problem of the renewal risk model with phase-type distributed interclaim times and exponentially distributed claim sizes. Assume that the phases of the interclaim times can be observed. We…

Optimization and Control · Mathematics 2020-11-19 Linlin Tian , Zhaoyang Liu

This paper studies De Finetti's optimal dividend problem with capital injection under spectrally positive Markov additive models. Based on dynamic programming principle, we first study an auxiliary singular control problem with a final…

Optimization and Control · Mathematics 2023-07-11 Wenyuan Wang , Kaixin Yan , Xiang Yu

This paper concerns an optimal dividend distribution problem for an insurance company whose risk process evolves as a spectrally negative L\'{e}vy process (in the absence of dividend payments). The management of the company is assumed to…

Probability · Mathematics 2015-06-22 F. Avram , Z. Palmowski , M. R. Pistorius

We study an optimal dividend problem for an insurer who simultaneously controls investment weights in a financial market, liability ratio in the insurance business, and dividend payout rate. The insurer seeks an optimal strategy to maximize…

Mathematical Finance · Quantitative Finance 2021-05-27 Zhuo Jin , Zuo Quan Xu , Bin Zou

We consider a discrete-time dividend payout problem with risk sensitive shareholders. It is assumed that they are equipped with a risk aversion coefficient and construct their discounted payoff with the help of the exponential premium…

Probability · Mathematics 2017-03-08 Nicole Bäuerle , Anna Jaśkiewicz

The first motivation of our paper is to explore further the idea that, in risk control problems, it may be profitable to base decisions both on the position of the underlying process Xt and on its supremum Xt := sup 0$\le$s$\le$t Xs.…

Optimization and Control · Mathematics 2019-11-15 Florin Avram , Dan Goreac

Maximising dividends is one classical stability criterion in actuarial risk theory. Motivated by the fact that dividends are paid periodically in real life, $\textit{periodic}$ dividend strategies were recently introduced (Albrecher, Gerber…

Optimization and Control · Mathematics 2021-08-19 Benjamin Avanzi , Hayden Lau , Bernard Wong

In this paper we consider the De Finetti's optimal dividend and capital injection problem under a Markov additive model. We assume that the surplus process before dividends and capital injections follows a spectrally positive Markov…

Optimization and Control · Mathematics 2022-10-28 Lijun Bo , Wenyuan Wang , Kaixin Yan

We consider de Finetti's problem for spectrally one-sided L\'evy risk models with control strategies that are absolutely continuous with respect to the Lebesgue measure. Furthermore, we consider the version with a constraint on the time of…

Optimization and Control · Mathematics 2026-01-14 Mauricio Junca , Harold Moreno-Franco , José-Luis Pérez , Kazutoshi Yamazaki

This paper considers an insurer with two collaborating business lines that faces three critical decisions: (1) dividend payout, (2) reinsurance coverage, and (3) capital injection between the lines, in the presence of model uncertainty. The…

Optimization and Control · Mathematics 2026-03-27 Tim J. Boonen , Engel John C. Dela Vega , Len Patrick Dominic M. Garces

We consider the multi-refraction strategies in two equivalent versions of the optimal dividend problem in the dual (spectrally positive L\'evy) model. The first problem is a variant of the bail-out case where both dividend payments and…

Probability · Mathematics 2018-03-19 Irmina Czarna , José Luis Pérez , Kazutoshi Yamazaki

This paper considers nonlinear regular-singular stochastic optimal control of large insurance company. The company controls the reinsurance rate and dividend payout process to maximize the expected present value of the dividend pay-outs…

Risk Management · Quantitative Finance 2010-08-31 Zongxia Liang , Jicheng Yao

We consider an insurance company modelling its surplus process by a Brownian motion with drift. Our target is to maximise the expected exponential utility of discounted dividend payments, given that the dividend rates are bounded by some…

Risk Management · Quantitative Finance 2019-01-23 Julia Eisenberg , Paul Krühner

For an insurance company with reserve modeled by the spectrally negative L\'{e}vy process, we study the optimal impulse dividend maximizing the expected accumulated net dividend payment subtracted by the accumulated cost of injecting…

Optimization and Control · Mathematics 2020-04-14 Wenyuan Wang , Yuebao Wang , Xueyuan Wu