What is An Actuary?

#1: The Actuarial Profession!

http://www.careercast.com/jobs-rated/best-worst-jobs-2013

47 – Accountant51 – Surgeon55 – Nurse58 – Psychologist61 – Architect79 – Judge

98 – Electrical Engineer104 – Stockbroker120 – Economist125 – Chemist

150 – Bartender152 – Real Estate Agent162 – Bank Teller196 – Oil Rig Worker

Based primarily on: Work Environment, Income, Future Outlook and Stress

Is Actuarial for You?

●Be a strong math student.

●Have the ability to problem solve and think logically.

●Enjoy both individual work as well as team work.

●Be tech savvy.

●Be committed in order to study for exams.

If you’re considering pursuing a career as an actuary, you should possess many of the following qualities:

What does an Actuary do?

●Actuaries are experts in quantifying and reducing risk

●They apply probability, statistics and risk theory to financial problems involving future uncertainty

●They are often found in:

●Life & Health Insurance (pricing, reserving, asset management, investments)

●Property & Casualty Insurance (natural disasters, home, auto, agricultural, pet)

●Pension & Wealth Modeling

●Academic & Government Organizations

5

Overview

Actuaries in the Workforce

Salary Information

Winning the Lottery! - A Tricky Problem

Actuaries at School

Perks at the University of Manitoba

The Actuarial Profession

Three professional bodies look after qualification to become an actuary:

●Fellowship: 8 -10 professional exams (outside of school)

●Graduating students pass 3-5 exams

●Pass remaining exams while working

Society of Actuaries

Actuaries in the workforce

Employer Location

Actuaries in the workforce

Career Paths

Insurance:

●Hierarchical organizations

●Ambitious and talented individuals are promoted

●Progress from technical to managerial to business leader

●Actuaries are commonly executives of major insurance companies such as Manulife, Great-West Life, Sun Life and many others

Actuaries in the workforce

Career Paths

Consulting:

Flatter organizations:●Technical support●Consultants

Consultants must be:●Technically strong●Good relationship managers●Strong communicators

Actuaries in the workforce

Career Paths

Non-traditional:

●Academics

●Government regulators

●Demographers

●Profession expanding into other industries (especially finance, agriculture, and even marketing!).

Actuaries in the workforce

What will this career do for you ?

●Dynamic and challenging work

●Exceptional chances for personal growth

●Highly respected profession

●Work where you want

●Very strong compensation throughout your career

Actuaries in the workforce

●It is common for Actuaries to double their starting salary within five years!

Annual average starting salary by major: $

Accounting - All 38,042

Accounting - CA Only 35,735

Accounting - CA Excluded 41,200

Actuarial Mathematics 60,833

Finance 42,864

This data is from 2011/2012 Asper School graduates

Salary Information

•D.W Simpson Actuarial Survey 2012 (U.S Dollars)

•The top and bottom 10% are excluded from this study

Life & HealthOctober

2012

0-0.5 yrs(excl.

sign-on)

0.5-2.5 yrs

2.5-4.5 yrs

4.5-6.5 yrs

6.5-9.5 yrs

9.5-14.5 yrs*

14.5-19.5yrs*

19.5+ yrs*

1 exam 50-58 54-69 55-72

2 exams 54-64 55-75 60-80 66-86

3 exams(MLC+MFE=1)

56-69 58-81 64-87 70-93

4 exams 60-74 62-89 65-93 72-101 75-110

4 exams FAP 1

66-92 68-101 76-111 82-122

ASA 72-101 77-114 84-128 95-144 96-160 110-234 121-244+

FSA 97-146 104-158 118-198 131-245 148-348 163-403+

http://www.actuaryjobs.com/salary.html

Salary Information

Set for Life

Question:

On your 18th birthday, you bought a Set for Life ticket, scratched it and won! You have two options for the grand prize:

• Option A: $1 million today, or

•Option B: $1000 per week for 25 years

($1000 x 52 weeks x 25 years = $1.3 Million)

Which would you choose?

14

Winning the Lottery! – A Tricky Problem

It depends…If interest rate = 0%

• No opportunity cost

• Option A = $1 million < Option B = $1.3 million

• Choose option B: $1000 per week for 25 years

15

.0452

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.0452

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.0452

• Opportunity to invest winning into a bank account that grows at the interest rate

• Option A: AV = $1million(1.04)25 = $2.67 million

• Option B: AV = $1000(1+ )1300 + $1000(1+ )1299 … + 1000(1+ )

= $1000[ (1+ )1300 – 1]/( )

= $2.23 million

If interest rate = 4%

•Choose option A: $1 million today

Winning the Lottery! – A Tricky Problem

Actuarial Studies at U of Manitoba

●Offered through Warren Centre

●Students can choose to do their Actuarial degree through either the Asper School of Business or the Faculty of Science

●Actuarial Program background:

●Began in 1912 (last year was our 100th anniversary!)

●Hundreds of grads have become actuaries

●One of the only Canadian schools to offer actuarial studies with a business degree

Actuaries at School

Actuarial Studies at U of ManitobaUndergraduate Degrees (3 choices)

B. Comm. (Hons) Actuarial Maths

B. Sc. (Hons) Actuarial Maths

B. Sc. (Hons) Actuarial Maths & Statistics (Joint)

Actuaries at School

Internships & Co-Op Program

●Actuarial students are offered high paying summer positions.

●Gives students an opportunity to experience actuarial work before they graduate.

●Students can relocate for the summer or stay local in Winnipeg.

●American companies provide a unique summer internship experience as students get to live with other interns and experience life in New York, Boston, Chicago and Hartford.

Actuaries at School

Recruiting at U of Manitoba

●Companies that actively recruit on campus:

●Great West Life, Wawanesa, Mercer, Aon – Winnipeg

●Manulife, Sun Life, Mercer – Toronto / Waterloo

●PBI, Mercer –Vancouver

●Towers Watson – Calgary, Chicago

●Allianz – Minneapolis

●Cigna – Hartford and Philadelphia

●Irregular recruiters:

●Deloitte, New York Life, MetLife – New York

●Co-Operators – Regina

●MPI - Winnipeg

●SGI – Saskatchewan

●You can apply anywhere!

Actuaries at School

What to take in Year 1

●Required Courses (24 credit hours)

●MATH 1500 & 1700 – Calculus

●MATH 1300 (or MATH 1310) – Linear Algebra

●ECON 1010 & 1020 – Economics

●STAT 1000 – Statistics

●Written English requirement

●Recommended Electives (6 credit hours)

●COMP 1010 – Computer Science and

●GMGT 1010 – Business & Society

Actuaries at School

Science Route

Bachelor of Commerce In Actuarial Math

Enroll in the Asper School of Business

Three routes:

●Through University 1

●Three - year program after University 1

●Direct Admission from High School

●Four – year program

●Transfer from another institution

Actuaries at School

Business Route

Direct admission criteria:

●High school graduation

●Five full grade 12 credits in courses designated S, G or U

●Over three courses (Pre-calculus 40S or Applied Math 40S, plus English 40S, plus one other 40S course)

●Minimum 60% grade in each, and

●Minimum 85% average over the three courses

Bachelor of Commerce In Actuarial Math

Actuaries at School

Business Route

●Key Courses ● (6) MATH 1500 & MATH 1700 - Calculus● (3) MATH 1300 – Linear Algebra● (6) ECON 1010 & ECON 1020 – Economics● (3) STAT 1000 – Statistics ● (3) Written English requirement

●Recommended Electives ● (3) GMGT 1010 – Business & Society & two of

● (3) GMGT 2060 – Management & Organizational Theory● (3) GMGT 2070 – Intro to Organizational Behaviour● (3) MKT 2210 – Introduction to Marketing

What to take in Year 1

Actuaries at School

Business Route

●State-of-the-art computer lab (new Bloomberg Terminals)

●Recently renovated Albert D. Cohen Management Library

●Beautiful modern building (with tables instead of desks!)

●Small classes

●Accessible professors

●A diverse and well run set of Student organizations

24

Perks at the University of Manitoba

●University of Manitoba Actuarial Club

●160+ Members spanning two faculties

●Many social events throughout the year

●Provide academic and professional resources

●Interview workshops, Excel workshops, networking events, textbook/manual exchange, study sessions, mentor/tutor programs

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Perks at the University of Manitoba

Is Actuarial for You?

You should:

●Be a strong math student.

●Have the ability to problem solve and think logically.

●Enjoy individual work as well as team work.

●Be tech savvy.

●Be committed in order to study for exams.

Questions ?

27

Contact Us

●Contact U of M Actuarial Club (UMAC)●Umac_exec@lists.umanitoba.ca or the website●http://www.umanitoba.ca/actuary_club/

●Contact Warren Centre for Actuarial Studies●Jeffrey.Pai@ad.umanitoba.ca Jeffrey Pai 474-6412●http://www.umanitoba.ca/asper/

academic_depts_centres/dept/actuarial

click on Student Resources & Programs

& then Requirements●Useful Website for more information

●http://www.beanactuary.org/