Strategies for Dividend Distribution: A Review

North American Actuarial Journal, Vol. 13, No. 2, pp. 217-251

44 Pages Posted: 23 Jan 2009 Last revised: 9 Sep 2009

See all articles by Benjamin Avanzi

Benjamin Avanzi

UNSW Australia Business School, School of Risk and Actuarial Studies

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Date Written: January 20, 2009

Abstract

In today's world of financial uncertainty, one major public concern is to assess (and possibly improve) the stability of companies that take on risks. Actuaries are aware of that issue for a very long time and have a great experience in modeling the activity of a risk business. During the first part of the twentieth century, they focused on the probability of ruin to assess the stability of their company. In his seminal paper, Bruno de Finetti (1957) criticized this approach and laid the foundations of what would become an increasingly popular topic: the study of dividend strategies. The contributions made by actuaries in that field constitute a substantial body of knowledge, whose interest is relevant not only to insurance, but also to a much broader range of areas of practice. In this paper, we aim at a taxonomical synthesis of the 50 years of actuarial research that followed de Finetti's original paper.

Keywords: Optimal Dividend strategies, de Finetti, Risk business, Ruin, Reinsurance

JEL Classification: C00, G20, G22, G31, G32, G35

Suggested Citation

Avanzi, Benjamin, Strategies for Dividend Distribution: A Review (January 20, 2009). North American Actuarial Journal, Vol. 13, No. 2, pp. 217-251. Available at SSRN: https://ssrn.com/abstract=1330638

Benjamin Avanzi (Contact Author)

UNSW Australia Business School, School of Risk and Actuarial Studies ( email )

UNSW Sydney, NSW 2052
Australia

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