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We consider a two-dimensional optimal dividend problem in the context of two branches of an insurance company with compound Poisson surplus processes dividing claims and premia in some specified proportions. We solve the stochastic control…

Optimization and Control · Mathematics 2018-04-12 Pablo Azcue , Nora Muler , Zbigniew Palmowski

We consider a two-dimensional optimal dividend problem in the context of two insurance companies with compound Poisson surplus processes, who collaborate by paying each other's deficit when possible. We solve the stochastic control problem…

Optimization and Control · Mathematics 2015-05-18 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

We consider the optimal dividend problem in the so-called degenerate bivariate risk model under the assumption that the surplus of one branch may become negative. More specific, we solve the stochastic control problem of maximizing…

Probability · Mathematics 2022-08-02 Philipp Lukas Strietzel , Henriette Elisabeth Heinrich

The present paper addresses the issue of the stochastic control of the optimal dynamic reinsurance policy and dynamic dividend strategy, which are state-dependent, for an insurance company that operates under multiple insurance lines of…

Optimization and Control · Mathematics 2020-02-11 Khaled Masoumifard , Mohammad Zokaei

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

We consider in this paper the optimal dividend problem for an insurance company whose uncontrolled reserve process evolves as a classical Cram\'{e}r--Lundberg process. The firm has the option of investing part of the surplus in a…

Portfolio Management · Quantitative Finance 2010-10-26 Pablo Azcue , Nora Muler

This paper considers an insurance company that faces two key constraints: a ratcheting dividend constraint and an irreversible reinsurance constraint. The company allocates part of its reserve to pay dividends to its shareholders while…

Optimization and Control · Mathematics 2025-12-22 Tim J. Boonen , Engel John C. Dela Vega

In this paper we study the problem of optimally paying out dividends from an insurance portfolio, when the criterion is to maximize the expected discounted dividends over the lifetime of the company and the portfolio contains claims due to…

Portfolio Management · Quantitative Finance 2023-11-13 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

We address a long-standing open problem in risk theory, namely the optimal strategy to pay out dividends from an insurance surplus process, if the dividend rate can never be decreased. The optimality criterion here is to maximize the…

Portfolio Management · Quantitative Finance 2021-06-08 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

We study the problem of optimal dividend payout from a surplus process governed by Brownian motion with drift under the additional constraint of ratcheting, i.e. the dividend rate can never decrease. We solve the resulting two-dimensional…

Probability · Mathematics 2020-12-22 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

This study considers an optimal reinsurance, investment, and dividend strategy control problem for insurance companies in a regulated Markov regime-switching environment, intending to maximize long-run average reward. Unlike existing single…

Optimization and Control · Mathematics 2025-12-18 Lingjia Zeng , Manman Li

We consider a diffusive model for optimally distributing dividends, while allowing for Knightian model ambiguity concerning the drift of the surplus process. We show that the value function is the unique solution of a non-linear…

Optimization and Control · Mathematics 2021-09-21 Prakash Chakraborty , Asaf Cohen , Virginia R. Young

We study an optimal dividend problem under a bankruptcy constraint. Firms face a trade-off between potential bankruptcy and extraction of profits. In contrast to previous works, general cash flow drifts, including Ornstein--Uhlenbeck and…

Optimization and Control · Mathematics 2018-03-05 Max Reppen , Jean-Charles Rochet , H. Mete Soner

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 assume the insurance wealth process is driven by the compound Poisson process. The discounting factor is modelled as a geometric Brownian motion at first and then as an exponential function of an integrated…

Mathematical Finance · Quantitative Finance 2018-07-24 Linlin Tian , Xiaoyi Zhang

We consider the valuation problem of an (insurance) company under partial information. Therefore we use the concept of maximizing discounted future dividend payments. The firm value process is described by a diffusion model with constant…

Mathematical Finance · Quantitative Finance 2016-02-16 Gunther Leobacher , Michaela Szölgyenyi , Stefan Thonhauser

We consider a mixed stochastic control problem that arises in Mathematical Finance literature with the study of interactions between dividend policy and investment. This problem combines features of both optimal switching and singular…

Probability · Mathematics 2008-12-18 Vathana Ly Vath , Huyên Pham , Stéphane Villeneuve

In this paper we address the problem of optimal dividend payout strategies from a surplus process governed by Brownian motion with drift under a drawdown constraint, i.e. the dividend rate can never decrease below a given fraction $a$ of…

Optimization and Control · Mathematics 2022-06-27 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

The aim of this paper is to introduce an insurance model allowing reinsurance and dividend payment. Our model deals with several homogeneous contracts and takes into account the legislation regarding the provisions to be justified by the…

Pricing of Securities · Quantitative Finance 2008-12-10 D. Goreac

In this note we study the optimal dividend problem for a company whose surplus process, in the absence of dividend payments, evolves as a generalized compound Poisson model in which the counting process is a generalized Poisson process.…

Pricing of Securities · Quantitative Finance 2014-02-26 Chuancun Yin
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