Optimal capital structure for insurance companies

This paper analyzes the capital structure decision that insurance companies face.A structural microeconomic model is constructed and solved by means of dynamic optimization. The model allows for a careful analysis of various aspects pertaining to the basic economic trade-off between increasing the level of surplus capital on the one hand, incurring high costs in imperfect capital markets, and decreasing thesurplus level on the other, eroding the quality and value of insurance protection offered.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

MORE ABOUT NETSPAR


Mission en strategy           •           Network           •           Organisation           •          Magazine
Netspar Brief            •            Actionplan 2019-2023           •           Researchagenda

ABOUT NETSPAR

Our partners

vu
B20160708_nationale nederlanden
B20190901_nidi-logo_greyscale
B20160708_apg
B20160708_ministeries
View all partners