Hanwha Life Insurance Presents at World’s Largest Financial AI Conference with Stanford HAI

Presentation of AI-Based Arbitrage Model Paper

Hanwha Life Insurance announced on the 19th that it presented a paper on an "AI-based arbitrage model" at ICAIF 2025, the world’s leading academic conference in financial artificial intelligence (AI), held in Singapore from November 15 to 18 (local time). The company introduced the joint research achievements of the Hanwha Life Insurance AI Research Center and Stanford HAI in the United States.

A representative from Hanwha Life Insurance Artificial Intelligence (AI) Research Center is presenting research achievements at ICAIF 2025. Hanwha Life Insurance

ICAIF is an academic conference organized by the Association for Computing Machinery (ACM), the world’s largest computer science society. It is one of the largest international AI conferences in the financial sector, with participation from global financial institutions such as JPMorgan, Morgan Stanley, and BlackRock, as well as academic researchers from around the world.

This year, ICAIF received 349 paper submissions, of which 113 passed the review process, resulting in an acceptance rate of 32.4%. The paper submitted by Hanwha Life Insurance was recognized as being among the top 15.5% of outstanding research and was included in the oral presentation session.

The research was jointly conducted by the Hanwha Life Insurance AI Research Center and the team of Professor Markus Pelger from the Department of Financial Engineering at Stanford University. The paper is titled "Statistical Arbitrage Using Attention Factors." The key innovation is the application of the attention technique, widely used in state-of-the-art generative AI, to financial factor models.

Attention is a technology that captures important signals from vast amounts of data. Factor models are analytical frameworks that identify common factors explaining stock price fluctuations. The model demonstrated its excellence by achieving a high risk-adjusted return (Sharpe ratio) in backtesting using historical data from the U.S. stock market.

Additionally, Hanwha Life Insurance utilized deep learning to predict price discrepancies (residual time series) between stocks that should move similarly, and refined portfolio adjustments to improve actual returns after accounting for transaction costs.

A Hanwha Life Insurance representative stated, "It is significant in that AI can learn subtle signals overlooked by traditional financial models and identify new investment opportunities. We will continue to expand the role of the AI Research Center through applied research that leads not only to technological advancements but also to real investment performance."

The review panel commented, "The research results from Hanwha Life Insurance have established a core foundation that can be expanded into future financial AI research."

Hanwha Life Insurance plans to actively promote the advancement of the financial AI research ecosystem and global cooperation through the public release and sharing of its research.

This content was produced with the assistance of AI translation services.