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We apply the theory of linear recurrence sequences to find an expression for the ultimate ruin probability in a discrete-time risk process. We assume the claims follow an arbitrary distribution with support $\{0,1,\ldots,m\}$, for some…

Probability · Mathematics 2023-02-14 David J. Santana , Luis Rincón

In this note we find a formula for the supremum distribution of spectrally positive or negative L\'evy processes with a broken linear drift. This gives formulas for ruin probabilities in the case when two insurance companies (or two…

Probability · Mathematics 2019-01-01 Zbigniew Michna

We consider a two-dimensional ruin problem where the surplus process of business lines is modelled by a two-dimensional correlated Brownian motion with drift. We study the ruin function $P(u)$ for the component-wise ruin (that is both…

Probability · Mathematics 2019-08-07 Krzysztof Debicki , Lanpeng Ji , Tomasz Rolski

In this paper, we consider the optimal dividends problem for a company whose cash reserves follow a general Levy process with certain positive jumps and arbitrary negative jumps. The objective is to find a policy which maximizes the…

Probability · Mathematics 2014-03-27 Chuancun Yin , Kam Chuen Yuen , Ying Shen

We derive formulas for the moments of the ruin time in a L\'evy risk model and use these to determine the asymptotic behavior of the moments of the ruin time as the initial capital tends to infinity. In the special case of the perturbed…

Probability · Mathematics 2022-08-02 Philipp Lukas Strietzel , Anita Behme

In this paper we consider some insurance policies related to drawdown and drawup events of log-returns for an underlying asset modeled by a spectrally negative geometric L\'evy process. We consider four contracts, three of which were…

Pricing of Securities · Quantitative Finance 2017-10-10 Zbigniew Palmowski , Joanna Tumilewicz

In this note, we study the ultimate ruin probabilities of a real-valued L{\'e}vy process X with light-tailed negative jumps. It is well-known that, for such L{\'e}vy processes, the probability of ruin decreases as an exponential function…

Probability · Mathematics 2018-02-26 Jérôme Spielmann

We study the discrete time risk process modelled by the skip-free random walk and we derive the results connected to the ruin probability, such as crossing the fixed level, for this kind of process. We use the method relying on the…

Probability · Mathematics 2017-09-08 Ivana Geček Tuđen

This paper investigates ruin probabilities for a two-dimensional fractional Brownian risk model with a proportional reinsurance scheme. We focus on joint and simultaneous ruin probabilities in a finite-time horizon. The risk processes of…

Probability · Mathematics 2020-10-02 Krzysztof Kȩpczyński

Given a spectrally negative L\'evy process, we predict, in a $L_1$ sense, the last passage time of the process below zero before an independent exponential time. This optimal prediction problem generalises Baurdoux and Pedraza (2020) where…

Probability · Mathematics 2021-08-11 Erik J. Baurdoux , José M. Pedraza

Motivated by classical considerations from risk theory, we investigate boundary crossing problems for refracted L\'evy processes. The latter is a L\'evy process whose dynamics change by subtracting off a fixed linear drift (of suitable…

Probability · Mathematics 2008-05-12 Andreas E. Kyprianou , Ronnie Loeffen

This paper considers magnitude, asymptotics and duration of drawdowns for some L\'{e}vy processes. First, we revisit some existing results on the magnitude of drawdowns for spectrally negative L\'{e}vy processes using an approximation…

Mathematical Finance · Quantitative Finance 2016-10-03 David Landriault , Bin Li , Hongzhong Zhang

We study the probability of ruin before time $t$ for the family of tempered stable L\'evy insurance risk processes, which includes the spectrally positive inverse Gaussian processes. Numerical approximations of the ruin time distribution…

Probability · Mathematics 2013-03-08 Philip S. Griffin , Ross A. Maller , Dale Roberts

This paper investigates a dividend optimization problem with a positive creeping-associated terminal value at ruin for spectrally negative Levy processes. We consider an insurance company whose surplus process evolves according to a…

Probability · Mathematics 2023-01-10 Chongrui Zhu

Given a Gaussian risk process $R(t)=u+c(t)-X(t),t\ge 0$, the cumulative Parisian ruin probability on a finite time interval $[0,T]$ with respect to $L \geq 0$ is defined as the probability that the sojourn time that the risk process $R$…

Probability · Mathematics 2024-02-06 Svyatoslav M. Novikov

In this paper, we revisit the optimal periodic dividend problem, in which dividend payments can only be made at the jump times of an independent Poisson process. In the dual (spectrally positive L\'evy) model, recent results have shown the…

Optimization and Control · Mathematics 2018-02-27 Kei Noba , José-Luis Pérez , Kazutoshi Yamazaki , Kouji Yano

We consider a spectrally-negative Markov additive process as a model of a risk process in random environment. Following recent interest in alternative ruin concepts, we assume that ruin occurs when an independent Poissonian observer sees…

Probability · Mathematics 2013-10-14 Hansjoerg Albrecher , Jevgenijs Ivanovs

A refracted L\'evy process is a L\'evy process whose dynamics change by subtracting off a fixed linear drift (of suitable size) whenever the aggregate process is above a pre-specified level. More precisely, whenever it exists, a refracted…

Probability · Mathematics 2012-05-04 Andreas E. Kyprianou , J. C. Pardo , J. L. Pérez

De Finetti's optimal dividend problem has recently been extended to the case dividend payments can only be made at Poisson arrival times. This paper considers the version with bail-outs where the surplus must be nonnegative uniformly in…

Probability · Mathematics 2018-01-03 Kei Noba , José-Luis Pérez , Kazutoshi Yamazaki , Kouji Yano

In this paper we solve the exit problems for (reflected) spectrally negative L\'evy processes, which are exponentially killed with a killing intensity dependent on the present state of the process and analyze respective resolvents. All…

Probability · Mathematics 2017-06-27 Bo Li , Zbigniew Palmowski