Combined Accumulation- and Decumulation-Plans with Risk-Controlled Capital Protection

We base our analysis on an investor, usually a retiree, endowed with a certain amount of wealth W, who considers both his own consumption needs (fixed periodic withdrawals) and the requirement of his heirs (defined bequest). For this purpose he pursues the following in-vestment strategy. The part F is invested in a set of investment funds with the target to achieve an accumulated wealth at the end of a certain time horizon of at least the original amount of wealth W (or the fraction ), measured in real terms. As certain investment risks are implied, we allow for the probability of falling short of the target and implement it into our model as a risk control parameter. The remaining part MM of the original wealth is invested in money market funds in order to avoid additional investment risks and deliver fixed periodic withdrawals until the end of the respective time horizon. The optimal investment strategy is the investment fund allocation that satisfies the probability of shortfall and mini-mizes F, while maximizing the fixed periodic withdrawals. We outline this investment prob-lem in a mathematical model and illustrate the solution for a reasonable choice of empirical parameters.

Asset/Liability Management of German Life Insurance Companies: A Value-at-Risk Approach in the Presence of Interest Rate Guarantees

This contribution analyses the implications of two major determinants influencing the asset allocation decision of German life insurers, which are the capital market development on the one hand and the interest rate guarantees of the traditional life insurance policies on the other hand. The adverse development of the stock prices between 2000 and 2002 asks for a consideration of not only the �normal� volatility but also the worst-case developments in an asset/liability management. In order to meet the latter requirement, we technically apply the risk measures of Value-at-Risk and Conditional Value-at-Risk. German life insurance policies incorporate interest rate guarantees, which are granted on an annual basis. This specific �myopic� nature of guarantees creates � beyond the control of the shortfall risk in general � the necessity to manage the asset allocation on an annual basis to match the time horizon of assets and liabilities. A quantitative approach analyses the impacts on the asset allocation decision. In our research we do not only consider market valuation, but also institutional peculiarities (such as hidden reserves and accounting norms) of German life insurers. We reveal the possibility of a riskless one-year investment, either based on market values or on book values, to be crucial for guaranteeing interest rates on an annual basis.

Dose-dependent relapse of hiatus hernia after administration of intrathecal baclofen treatment—a rare complication

Introduction: Intrathecal baclofen treatment (ITB) is widely used in children with cerebral palsy. Although this treatment effectively reduces spasticity, diverse side effects are reported. Case report: We report about a boy with severe asphyxia-induced encephalopathy with bilateral cerebral palsy. After starting the intrathecal baclofen treatment, he episodically showed symptoms of severe gastroesophageal reflux with pale skin color, vomiting, massive drooling, acid regurgitation, and reduced well-being. An open ventral semifundoplication was done some years ago to treat a gastroesophageal reflux. These symptomatic episodes occurred strongly dose-dependent and were not observed during the short test procedure. Conclusion: For the first time, a strong dose-dependent treatment with ITB was documented as a cause for the above episodes and relapsing re-herniation