Optimal investment for an insurer with multiple risky assets under mean-variance criterion

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

3 Scopus citations

Abstract

This paper considers the optimal investment strategy for an insurer under the criterion of mean-variance. The risk process is a compound Poisson process and the insurer can invest in a risk-free asset and multiple risky assets. We obtain the optimal investment policy using the stochastic liner-quadrant (LQ) control theory. Then the efficient strategy (optimal investment strategy) and efficient frontier are derived explicitly by a verification theorem with the classical solution of Hamilton-Jacobi-Bellman (HJB) equation.

Original languageEnglish
Title of host publicationCOMPSTAT 2008 - Proceedings in Computational Statistics, 18th Symposium
PublisherSpringer Berlin Heidelberg
Pages205-216
Number of pages12
ISBN (Print)9783790820836
DOIs
StatePublished - 2008
Externally publishedYes
Event18th Symposium on Computational Statistics, COMPSTAT 2008 - Porto, Portugal
Duration: 24 Aug 200829 Aug 2008

Publication series

NameCOMPSTAT 2008 - Proceedings in Computational Statistics, 18th Symposium

Conference

Conference18th Symposium on Computational Statistics, COMPSTAT 2008
Country/TerritoryPortugal
CityPorto
Period24/08/0829/08/08

Keywords

  • Efficient frontier
  • M-V portfolio selection
  • Optimal investment

Fingerprint

Dive into the research topics of 'Optimal investment for an insurer with multiple risky assets under mean-variance criterion'. Together they form a unique fingerprint.

Cite this