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Based on a point of view that solvency and security are first, this paper considers regular-singular stochastic optimal control problem of a large insurance company facing positive transaction cost asked by reinsurer under solvency…

Risk Management · Quantitative Finance 2010-12-22 Zongxia Liang , Jicheng Yao

In this article we consider the surplus process of an insurance company within the Cramer-Lundberg framework. We study the optimal reinsurance strategy and dividend distribution of an insurance company under proportional reinsurance, in…

Optimization and Control · Mathematics 2026-05-22 Zakaria Aljaberi , Asma Khedher , Mohamed Mnif

In this paper we consider the optimal dividend problem for an insurance company whose risk process evolves as a spectrally negative L\'{e}vy process in the absence of dividend payments. The classical dividend problem for an insurance…

Probability · Mathematics 2008-12-10 Florin Avram , Zbigniew Palmowski , Martijn R. Pistorius

In this paper, we study two optimisation settings for an insurance company, under the constraint that the terminal surplus at a deterministic and finite time $T$ follows a normal distribution with a given mean and a given variance. In both…

Mathematical Finance · Quantitative Finance 2022-06-13 Katia Colaneri , Julia Eisenberg , 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 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

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

In this paper, we investigate the problem of optimal strategies of dividend and reinsurance under the Cram\'{e}r-Lundberg risk model embedded with the thinning-dependence structure which was firstly introduced by Wang and Yuen (2005),…

Optimization and Control · Mathematics 2020-07-02 Mi Chen , Kam Chuen Yuen , Wenyuan Wang

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

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 study the optimal dividend problem in the dual model where dividend payments can only be made at the jump times of an independent Poisson process. In this context, Avanzi et al. [5] solved the case with i.i.d. hyperexponential jumps;…

Probability · Mathematics 2017-08-15 José-Luis Pérez , Kazutoshi Yamazaki

This paper is concerned with a long standing optimal dividend payout problem subject to the so-called ratcheting constraint, that is, the dividend payout rate shall be non-decreasing over time and is thus self-path-dependent. The surplus…

Mathematical Finance · Quantitative Finance 2024-07-08 Chonghu Guan , Zuo Quan Xu

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

Default risk significantly affects the corporate policies of a firm. We develop a model in which a limited liability entity subject to Poisson default shock jointly sets its dividend policy and capital structure to maximize the expected…

Mathematical Finance · Quantitative Finance 2018-10-09 Alex S. L. Tse

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

In this paper we study the optimal dividend problem for a company whose surplus process evolves as a spectrally positive Levy process. This model including the dual model of the classical risk model and the dual model with diffusion as…

Portfolio Management · Quantitative Finance 2014-03-11 Chuancun Yin , Yuzhen Wen , Yongxia Zhao

This paper studies the bailout optimal dividend problem with regime switching under the constraint that dividend payments can be made only at the arrival times of an independent Poisson process while capital can be injected continuously in…

Probability · Mathematics 2022-07-05 Dante Mata , Harold A. Moreno-Franco , Kei Noba , José-Luis Pérez

This paper considers an optimal dividend distribution problem for an insurance company where the dividends are paid in a foreign currency. In the absence of dividend payments, our risk process follows a spectrally negative L\'evy process.…

Mathematical Finance · Quantitative Finance 2020-01-14 Julia Eisenberg , Zbigniew Palmowski

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

We consider an optimal control problem of a property insurance company with proportional reinsurance strategy. The insurance business brings in catastrophe risk, such as earthquake and flood. The catastrophe risk could be partly reduced by…

Risk Management · Quantitative Finance 2010-09-08 Zongxia Liang , Lin He , Jiaoling Wu