Kasozi, JumaMayambala, FredCharles, Wilson M.2016-09-212016-09-212011Kasozi, (2011). Dividend Maximization in the Cramer-Lundberg Model using Homotopy Analysis Method. Journal of Mathematics and Statistics, 7(1), pp.61-67.1558-6359http://hdl.handle.net/20.500.11810/3785Full text can be accessed at http://thescipub.com/html/10.3844/jmssp.2011.61.67Problem statement: We used the Homotopy Analysis Method (HAM) to numerically compute the value function of the dividend payment in the basic insurance process. Approach: The process is a constant income stream from premiums which is subtracted a claim process of the Poisson type. Further, an allowance for payment of dividends to share holders was incorporated. Results: The case when the claims are exponential has an analytical solution. The HAM was then applied to the resulting Hamilton-Jacobi-Bellman equation and the numerical results obtained were compared to the theoretical results in order to check the validity of the method. Conclusion: The HAM was then applied to the model to check for other claim size distributions. The results obtained are very encouraging.enJournal Article10.3844/jmssp.2011.61.67