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Variable annuities with Guaranteed Minimum Withdrawal Benefits (GMWB) entitle the policy holder to periodic withdrawals together with a terminal payoff linked to the performance of an equity fund. In this paper, we consider the valuation of…

证券定价 · 定量金融 2023-08-08 Claudio Fontana , Francesco Rotondi

A variable annuity is an equity-linked financial product typically offered by insurance companies. The policyholder makes an upfront payment to the insurance company and, in return, the insurer is required to make a series of payments…

证券定价 · 定量金融 2019-11-25 Riley Jones , Adriana Ocejo

The guaranteed minimum withdrawal benefit (GMWB) rider, as an add on to a variable annuity (VA), guarantees the return of premiums in the form of peri- odic withdrawals while allowing policyholders to participate fully in any market gains.…

证券定价 · 定量金融 2015-05-14 Cody B. Hyndman , Menachem Wenger

In this paper we present a numerical valuation of variable annuities with combined Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed Minimum Death Benefit (GMDB) under optimal policyholder behaviour solved as an optimal stochastic…

计算金融 · 定量金融 2015-04-10 Xiaolin Luo , Pavel V. Shevchenko

This paper investigates optimal withdrawal strategies and behavior of policyholders in a variable annuity (VA) contract with a guaranteed minimum withdrawal benefit (GMWB) rider incorporating taxation and a ratchet mechanism for enhancing…

投资组合管理 · 定量金融 2025-07-14 Jennifer Alonso-Garcia , Len Patrick Dominic M. Garces , Jonathan Ziveyi

A variable annuity contract with Guaranteed Minimum Withdrawal Benefit (GMWB) promises to return the entire initial investment through cash withdrawals during the policy life plus the remaining account balance at maturity, regardless of the…

证券定价 · 定量金融 2014-11-03 Xiaolin Luo , Pavel Shevchenko

This paper examines the optimal annuitization, investment and consumption strategies of a utility-maximizing retiree facing a stochastic time of death under a variety of institutional restrictions. We focus on the impact of aging on the…

投资组合管理 · 定量金融 2015-06-22 Moshe A. Milevsky , Virginia R. Young

A variable annuity contract with Guaranteed Minimum Withdrawal Benefit (GMWB) promises to return the entire initial investment through cash withdrawals during the contract plus the remaining account balance at maturity, regardless of the…

证券定价 · 定量金融 2017-01-17 Pavel V. Shevchenko , Xiaolin Luo

Under the optimal withdrawal strategy of a policyholder, the pricing of variable annuities with Guaranteed Minimum Withdrawal Benefit (GMWB) is an optimal stochastic control problem. The surrender feature available in marketed products…

证券定价 · 定量金融 2015-08-03 Xiaolin Luo , Pavel Shevchenko

Valuing Guaranteed Lifelong Withdrawal Benefit (GLWB) has attracted significant attention from both the academic field and real world financial markets. As remarked by Forsyth and Vetzal the Black and Scholes framework seems to be…

证券定价 · 定量金融 2019-10-21 Ludovic Goudenege , Andrea Molent , Antonino Zanette

In this paper we investigate price and Greeks computation of a Guaranteed Minimum Withdrawal Benefit (GMWB) Variable Annuity (VA) when both stochastic volatility and stochastic interest rate are considered together in the Heston Hull-White…

计算金融 · 定量金融 2019-07-23 Ludovic Goudenège , Andrea Molent , Antonino Zanette

We consider the problem of optimal annuitization with labour income, where an agent aims to maximize utility from consumption and labour income under age-dependent force of mortality. Using a dynamic programming approach, we derive…

投资组合管理 · 定量金融 2025-10-14 Criscent Birungi , Cody Hyndman

We construct a binomial model for a guaranteed minimum withdrawal benefit (GMWB) rider to a variable annuity (VA) under optimal policyholder behaviour. The binomial model results in explicitly formulated perfect hedging strategies funded…

证券定价 · 定量金融 2016-07-07 Cody B. Hyndman , Menachem Wenger

The state-of-the-art proposes Life Care Annuities, that have been recently designed as variable annuity contracts with Long-Term Care payouts and Guaranteed Lifelong Withdrawal Benefits. In this paper, we propose more general features for…

计算金融 · 定量金融 2024-05-10 G. Apicella , A. Molent , M. Gaudenzi

We find the minimum probability of lifetime ruin of an investor who can invest in a market with a risky and a riskless asset and who can purchase a reversible life annuity. The surrender charge of a life annuity is a proportion of its…

风险管理 · 定量金融 2010-01-26 Ting Wang , Virginia R. Young

We introduce an extension to Merton's famous continuous time model of optimal consumption and investment, in the spirit of previous works by Pliska and Ye, to allow for a wage earner to have a random lifetime and to use a portion of the…

投资组合管理 · 定量金融 2011-02-14 I. Duarte , D. Pinheiro , A. A. Pinto , S. R. Pliska

In this paper, we study the price of Variable Annuity Guarantees, especially of Guaranteed Annuity Options (GAO) and Guaranteed Minimum Income Benefit (GMIB), and this in the settings of a derivative pricing model where the underlying spot…

证券定价 · 定量金融 2012-04-04 Griselda Deelstra , Grégory Rayée

The purpose of this article is twofold. First, we motivate the need for a new type of stand-alone retirement income insurance product that would help individuals protect against personal longevity risk and possible "retirement ruin" in an…

风险管理 · 定量金融 2012-05-14 Huaxiong Huang , Moshe A. Milevsky , Thomas S. Salisbury

This paper formulates and solves the optimal stopping problem for a loan made to one's self from a tax-advantaged retirement account such as a 401(k), 403(b), or 457(b) plan. If the plan participant has access to an external asset with a…

综合经济学 · 经济学 2022-10-24 Alex Garivaltis

In this paper, we review pricing of variable annuity living and death guarantees offered to retail investors in many countries. Investors purchase these products to take advantage of market growth and protect savings. We present pricing of…

证券定价 · 定量金融 2017-05-04 Pavel V. Shevchenko , Xiaolin Luo
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