English
Related papers

Related papers: Optimal Dividends under Markov-Modulated Bankruptc…

200 papers

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

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 diffusion risk model where dividends are paid at rate $U(t) \in [0, u_0]$. We are interested in maximising the dividend payments under a drawdown constraint, that is, we penalise a drawdown size larger than a level $d > 0$. We…

Optimization and Control · Mathematics 2025-11-06 Kira Dudziak , Hanspeter Schmidli

Motivated by recent developments in risk management based on the U.S. bankruptcy code, we revisit the De Finetti's optimal dividend problem by incorporating the reorganization process and regulator's intervention documented in Chapter 11…

Optimization and Control · Mathematics 2023-11-07 Wenyuan Wang , Xiang Yu , Xiaowen Zhou

In this paper we study the problem of optimal dividend payment strategy which maximizes the expected discounted sum of dividends to a multidimensional set up of n associated insurance companies where the surplus process follows an…

Optimization and Control · Mathematics 2018-10-04 Pablo Azcue , Nora Muler

We consider a portfolio optimization problem in a defaultable market with finitely-many economical regimes, where the investor can dynamically allocate her wealth among a defaultable bond, a stock, and a money market account. The market…

Portfolio Management · Quantitative Finance 2011-09-07 Agostino Capponi , Jose E. Figueroa-Lopez

We solve an infinite time-horizon bounded-variation stochastic control problem with regime switching between $N$ states. This is motivated by the problem of a government that wants to control the country's debt-to-GDP (gross domestic…

Optimization and Control · Mathematics 2019-12-10 Giorgio Ferrari , Neofytos Rodosthenous

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

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 an optimal dividend problem with transaction costs where the surplus is modelled by a spectrally negative L\'evy process in an Omega model. n this model, the surplus is allowed to spend time below the critical ruin level, but is…

Optimization and Control · Mathematics 2025-09-01 Dante Mata

This paper studies the optimal dividend problem with capital injection under the constraint that the cumulative dividend strategy is absolutely continuous. We consider an open problem of the general spectrally negative case and derive the…

Mathematical Finance · Quantitative Finance 2018-06-12 José-Luis Pérez , Kazutoshi Yamazaki , Xiang Yu

This paper studies an optimal dividend problem for a company that aims to maximize the mean-variance (MV) objective of the accumulated discounted dividend payments up to its ruin time. The MV objective involves an integral form over a…

Optimization and Control · Mathematics 2025-08-19 Jingyi Cao , Dongchen Li , Virginia R. Young , Bin Zou

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 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

This paper develops numerical methods for finding optimal dividend pay-out and reinsurance policies. A generalized singular control formulation of surplus and discounted payoff function are introduced, where the surplus is modeled by a…

Computational Finance · Quantitative Finance 2011-11-11 Zhuo Jin , George Yin , Chao Zhu

We propose a model in which dividend payments occur at regular, deterministic intervals in an otherwise continuous model. This contrasts traditional models where either the payment of continuous dividends is controlled or the dynamics are…

Optimization and Control · Mathematics 2019-07-24 Jussi Keppo , Max Reppen , H. Mete Soner

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

The optimization criterion for dividends from a risky business is most often formalized in terms of the expected present value of future dividends. That criterion disregards a potential, explicit demand for stability of dividends. In…

Optimization and Control · Mathematics 2023-06-22 Benjamin Avanzi , Debbie Kusch Falden , Mogens Steffensen

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