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We study the optimal investment and proportional reinsurance problem of an insurance company, whose investment preferences are described via a forward dynamic utility of exponential type in a stochastic factor model allowing for a possible…

Mathematical Finance · Quantitative Finance 2022-10-20 Katia Colaneri , Alessandra Cretarola , Benedetta Salterini

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

We solve two stochastic control problems in which a player tries to minimize or maximize the exit time from an interval of a Brownian particle, by controlling its drift. The player can change from one drift to another but is subject to a…

Probability · Mathematics 2014-08-19 Robert C. Dalang , Laura Vinckenbosch

In this paper the utility optimization problem for a general insurance model is studied. The reserve process of the insurance company is described by a stochastic differential equation driven by a Brownian motion and a Poisson random…

Probability · Mathematics 2009-09-01 Yuping Liu , Jin Ma

We determine the optimal robust investment strategy of an individual who targets at a given rate of consumption and seeks to minimize the probability of lifetime ruin when she does not have perfect confidence in the drift of the risky…

Optimization and Control · Mathematics 2014-11-04 Erhan Bayraktar , Yuchong Zhang

This paper investigates dividend optimization of an insurance corporation under a more realistic model which takes into consideration refinancing or capital injections. The model follows the compound Poisson framework with credit interest…

Optimization and Control · Mathematics 2012-09-19 Jinxia Zhu

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 the optimal control of general stochastic McKean-Vlasov equation. Such problem is motivated originally from the asymptotic formulation of cooperative equilibrium for a large population of particles (players) in mean-field…

Probability · Mathematics 2017-01-06 Huyên Pham , Xiaoli Wei

We address the problem of making a managerial decision when the investment project is subsidized, which results in the resolution of an infinite-horizon optimal stopping problem of a switching diffusion driven by either an homogeneous or an…

Probability · Mathematics 2018-02-28 Carlos Oliveira , Nicolas Perkowski

This paper deals with numerical solutions of maximizing expected utility from terminal wealth under a non-bankruptcy constraint. The wealth process is subject to shocks produced by a general marked point process. The problem of the agent is…

Computational Finance · Quantitative Finance 2010-09-06 Mohamed Mnif

This paper concerns an optimal impulse control problem associated with a refracted L\'{e}vy process, involving the reduction of reserves to a predetermined level whenever they exceed a specified threshold. The ruin time is determined by…

Optimization and Control · Mathematics 2026-01-29 Zhongqin Gao , Yan Lv , Jingmin He

This study employs expected certainty equivalents to explore the reinsurance and investment issue pertaining to an insurer that aims to maximize the expected utility while being subject to random risk aversion. The insurer's surplus process…

Optimization and Control · Mathematics 2025-01-03 Jian-hao Kang , Zhun Gou , Nan-jing Huang

In this work we investigate the optimal proportional reinsurance-investment strategy of an insurance company which wishes to maximize the expected exponential utility of its terminal wealth in a finite time horizon. Our goal is to extend…

Risk Management · Quantitative Finance 2019-04-04 Matteo Brachetta , Claudia Ceci

Motivated by a control problem of a certain queueing network we consider a control problem where the dynamics is constrained in the nonnegative orthant $\mathbb{R}_+$ of the $d$-dimensional Euclidean space and controlled by the reflections…

Optimization and Control · Mathematics 2016-11-29 Anup Biswas , Hitoshi Ishii , Subhamay Saha , Lin Wang

We study optimal portfolio choice under Epstein-Zin recursive utility in the presence of general leverage constraints. We first establish that the optimal value function is the unique viscosity solution to the associated…

Portfolio Management · Quantitative Finance 2025-10-24 Dejian Tian , Weidong Tian , Jianjun Zhou , Zimu Zhu

In this paper, we consider the problem of optimal investment by an insurer. The insurer invests in a market consisting of a bank account and $m$ risky assets. The mean returns and volatilities of the risky assets depend nonlinearly on…

Portfolio Management · Quantitative Finance 2019-03-22 Hiroaki Hata , Shuenn-Jyi Sheu , Li-Hsien Sun

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

Optimal control problem is typically solved by first finding the value function through Hamilton-Jacobi equation (HJE) and then taking the minimizer of the Hamiltonian to obtain the control. In this work, instead of focusing on the value…

Optimization and Control · Mathematics 2021-09-10 Alain Bensoussan , Jiayue Han , Sheung Chi Phillip Yam , Xiang Zhou

In this paper, we consider the portfolio optimization problem in a financial market where the underlying stochastic volatility model is driven by n-dimensional Brownian motions. At first, we derive a Hamilton-Jacobi-Bellman equation…

Mathematical Finance · Quantitative Finance 2024-12-20 Minglian Lin , Indranil SenGupta

We study optimal control problems in infinite horizon when the dynamics belong to a specific class of piecewise deterministic Markov processes constrained to star-shaped networks (inspired by traffic models). We adapt the results in [H. M.…

Optimization and Control · Mathematics 2015-10-06 Dan Goreac , Magdalena Kobylanski , Miguel Martinez