Portfolio risk analysis of excess of loss reinsurance

Consider a catastrophe insurance market in which primary insurers purchase excess of loss reinsurance to transfer their higher-layer losses to a reinsurer. We conduct a portfolio risk analysis for the reinsurer. In doing so, we model the losses to the primary insurers by a mixture structure, which effectively integrates three risk factors: common shock, systematic risk, and idiosyncratic risk. Assume that the reinsurer holds an initial capital Cn that is in accordance with its market size n. When expanding its business, the reinsurer needs to comply with a certain VaR-based solvency capital requirement, which determines an infimal retention level rn according to the initial capital Cn. As our main results, we find the limit of rn as n→∞ and then establish a weak convergence for the reinsurance portfolio loss. The latter result is applied to approximate the distortion risk measures of the reinsurance portfolio loss. In our numerical studies, we examine the accuracy of the obtained approximations and conduct various sensitivity tests against some risk parameters

Insurance risk analysis of financial networks vulnerable to a shock

We conduct a risk analysis of non-core insurance business of selling protection to financial firms against investment losses due to a shock. A static structural model is constructed, composed of a network of firms who cross-hold each other, a financial market consisting of multiple primitive assets that are vulnerable to a shock, and an insurer who resides external to the network and assesses the opportunity to sell protection to the financial firms. Assume that each firm in the network is rational and able to decide how much protection to purchase to optimize its portfolio according to the mean-variance principle. As a result, the shock may impact on the insurer but indirectly through the network. In view of the robust-yet-fragile nature of financial networks that has been discovered, both empirically and theoretically, by various recent works, one expects that the network integration and the shock play an intertwined role in the insurance risk. Our study forms a theoretical confirmation of this surmise: Depending on the shock size, there are three mutually exclusive scenarios in which an increase in the network integration can either reduce or amplify the impact of the shock on the insurance risk

Comparative Study on the Structures of Chinese and Korean Compound Words

The goal of the research was to compare the compound words in Chinese, an isolated language, and Korean, an agglutinative language. This research used library research. The researchers found that the main characteristics of the formation of Korean compound words were that the latter element was the central word. The method of word formation decided its lexical category. Moreover, most of the internal relationships of the compound words were connection and modification. While in Chinese, the endocentric compound noun decided the part of speech of the compound word, and could be the proceeding element or the latter element. Furthermore, Chinese contained no complicated morphological changes. It is concluded that Korean is a Subject–Object–Verb (SOV) language, where verb elements demonstrate a central feature of the compound verb are always a trailing part. Thus, there is no exocentric compound verb in Korean. By contrast, Chinese is a typical SVO language. When constituting the compound verbs, nouns or adjectives can function as the structural elements. Therefore, there is no permanent position for head words

Empirical risk minimization for metric learning using privileged information

Traditional metric learning methods usually make decisions based on a fixed threshold, which may result in a suboptimal metric when the inter-class and inner-class variations are complex. To address this issue, in this paper we propose an effective metric learning method by exploiting privileged information to relax the fixed threshold under the empirical risk minimization framework. Privileged information describes useful high-level semantic information that is only available during training. Our goal is to improve the performance by incorporating privileged information to design a locally adaptive decision function. We jointly learn two distance metrics by minimizing the empirical loss penalizing the difference between the distance in the original space and that in the privileged space. The distance in the privileged space functions as a locally adaptive decision threshold, which can guide the decision making like a teacher. We optimize the objective function using the Accelerated Proximal Gradient approach to obtain a global optimum solution. Experiment results show that by leveraging privileged information, our proposed method can achieve satisfactory performance

Effects of recombinant human collagen VI from Escherichia coli on UVA-irradiated human skin fibroblasts cells

In this study, we reported the cloning and over expression of a gene coding for human collagen peptide (CP6) in Escherichia coli and investigated the protective effects of CP6 on UVA-irradiated human skin fibroblasts cells. The collagen peptide (CP6) was highly soluble and the expression level was approximately 10% of the total bacteria proteins. Also, we performed assays with 3-(4,5-dimethylthiazol- 2-yl)-2,5-diphenyltetrazolium bromide (MTT), Annexin V-fluorescein isothiocyanate/propidine iodide (Annexin V-FITC/PI) and terminal deoxynucleotidyl transferase dUTP nick end labeling (TUNEL) methods to investigate the cytoprotective effects of CP6 on the proliferation of UVA-damaged human skin fibroblasts cells. Radiation dosages (5 J/cm2) significantly decreased the proliferation activities of human skin fibroblasts cells (HSF). Compared with UVA irradiated group, in the given concentration, CP6 could improve the activities of cell’s proliferation (P<0.05) and decrease the apoptosis rate of cell significantly (P<0.01). UVA could damage the human skin fibroblasts cell in vitro. The CP6 had protective effects on HSF irradiated by UVA, and the mechanism of this effect might be associated with its anti-oxidative effect and enhancing cell’s proliferation.Key words: Protein expression, Collagen peptide, Human skin fibroblasts cells, UVA

Structural, electronic, magnetic properties of Cu-doped lead-apatite Pb10−x_{10-x}Cux_x(PO4_4)6_6O

The recent report of superconductivity in the Cu-doped PbPO compound stimulates the extensive researches on its physical properties. Herein, the detailed atomic and electronic structures of this compound are investigated, which are the necessary information to explain the physical properties, including possible superconductivity. By the first-principles electronic structure calculations, we find that the partial replacement of Pb at $4f$ site by Cu atom, instead of Pb at $6h$ site, plays a crucial role in dominating the electronic state at Fermi energy. The $3d$ electronic orbitals of Cu atom emerge near the Fermi energy and exhibit strong spin-polarization, resulting in the local moment around the doped Cu atom. Particularly, the ground state of Pb$_{10-x}$Cu$_x$(PO$_4$)$_6$O (x = 1) is determined to be a semiconducting phase, in good agreement with the experimental measurements

Novel Non-Toxic Xylene Substitute (SBO) for Histology

Xylene has been generally used as a clearing and deparaffinizing agent in histology. Because of the potential toxic and flammable nature of xylene, its substitutes have been introduced into some laboratories. In this study, we introduced a novel, non-toxic xylene substitute (SBO), which was  generated through a mixture of 86% of white oil No.2 and 14% of N-heptane. SBO had a high boiling point (188°C) and flash point (144°C) coupled with a scentless and decreased volatility. To compare the effectiveness of SBO and xylene in histology, a wide range of tissue samples from rats and human beings were processed in parallel in SBO and xylene, subjected to various staining procedures. Similar to the xylene-processed paraffin blocks, the SBO-processed counterparts were easy to section without any evidence of cell shrinkage. Assessment of the SBO-treated sections stained with hematoxylin-eosin revealed a good maintenance of cell morphology and structure, and a clear definition of the cytoplasm and the nucleus. Moreover, comparable good results were achieved between the SBO- and xylene-processed tissues in other histochemical and immunohistochemical stainings. Six-month clinical applications at one department of pathology supported the potentials of SBO as a xylene substitute. In conclusion, we suggest that SBO is a safe and efficient substitute of xylene and may probably replace xylene without losing valuable diagnostic information.Key words: SBO, clearing agent, xylene, histology, toxicit

Six-Quark Amplitudes from Fermionic MHV Vertices

The fermionic extension of the CSW approach to perturbative gauge theory coupled with fermions is used to compute the six-quark QCD amplitudes. We find complete agreement with the results obtained by using the usual Feynman rules.Comment: Latex file, 16 pages, 4 figure