Findings from University of Limpopo Provides New Data about Insurance [Optimal Investment and Reinsurance Strategies With Federal Income Tax Under the Geometric Mean Reversion (Gmr) Model]: Insurance

2025 JAN 21 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Data detailed on Insurance have been presented. According to news reporting out of Sovenga, South Africa, by NewsRx editors, research stated, “This paper considered optimal investment and reinsurance strategies under the Geometric Mean Reversion (GMR) model when the insurer pays Federal income tax on the dividends. A Brownian motion with drift is used for modeling the insurer’s surplus process.”

Our news journalists obtained a quote from the research from the University of Limpopo, “The financial market consists of one risk-free asset and one risky asset whose price process satisfies the Geometric Mean Reversion (GMR) model. The objective of the insurer is to maximize the utility of terminal wealth. In the framework of stochastic control, explicit expressions for optimal strategies are derived.”

According to the news editors, the research concluded: “In addition, a number of intriguing results are obtained, and numerical simulations are presented to demonstrate our findings.”

This research has been peer-reviewed.

For more information on this research see: Optimal Investment and Reinsurance Strategies With Federal Income Tax Under the Geometric Mean Reversion (Gmr) Model. Journal of Industrial and Management Optimization, 2024. Journal of Industrial and Management Optimization can be contacted at: Amer Inst Mathematical Sciences-aims, PO Box 2604, Springfield, Mo 65801-2604, United States.

Our news journalists report that additional information may be obtained by contacting Farai julius Mhlanga, University of Limpopo, Dept. of Mathematics and Applied Mathematics, Private Bag X1106, Za-0727 Sovenga, South Africa. Additional authors for this research include Winfrida felix Mwigilwa and Emmanuel Sinkwembe.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.3934/jimo.2024193. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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