What is An Actuary http www careercast comjobsratedbestworstjobs2013

What is An Actuary?

http: //www. careercast. com/jobs-rated/best-worst-jobs-2013 #1: The Actuarial Profession! Based primarily on: Work Environment, Income, Future Outlook and Stress 47 – Accountant 51 – Surgeon 55 – Nurse 58 – Psychologist 61 – Architect 79 – Judge 98 – Electrical Engineer 104 – Stockbroker 120 – Economist 125 – Chemist 150 – Bartender 152 – Real Estate Agent 162 – Bank Teller 196 – Oil Rig Worker

Is Actuarial for You? If you’re considering pursuing a career as an actuary, you should possess many of the following qualities: ● 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.

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

Overview Actuaries in the Workforce Salary Information Winning the Lottery! - A Tricky Problem Actuaries at School Perks at the University of Manitoba 5

Actuaries in the workforce 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 Major Business Centres Vancouver Toronto Montreal Calgary Winnipeg New York Chicago Los Angeles

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 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

Salary Information This data is from 2011/2012 Asper School graduates 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 ●It is common for Actuaries to double their starting salary within five years!

Salary Information Life & Health October 2012 0 -0. 5 yrs (excl. sign-on) 0. 52. 5 yrs 2. 54. 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+ 97 -146 104 -158 118 -198 131 -245 148 -348 163 -403+ FSA 4. 56. 5 yrs • D. W Simpson Actuarial Survey 2012 (U. S Dollars) • The top and bottom 10% are excluded from this study http: //www. actuaryjobs. com/salary. html 6. 59. 5 yrs 9. 514. 5 -19. 5 14. 5 yrs* 19. 5+ yrs*

Winning the Lottery! – A Tricky Problem Set for Life Question: On your 18 th 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 If interest rate = 4% • Opportunity to invest winning into a bank account that grows at the interest rate • Option A: AV = $1 million(1. 04)25 = $2. 67 million • Option B: AV = $1000(1+. 04 )1300 + $1000(1+. 04 )1299 … + 1000(1+. 04 ) 52 52 52 1300 – 1]/(. 04 ) = $1000[ (1+. 04 52 ) 52 = $2. 23 million • Choose option A: $1 million today 15

Actuaries at School 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 100 th 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 Manitoba Undergraduate Degrees (3 choices) B. Comm. (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, Met. Life – New York ● Co-Operators – Regina ● MPI - Winnipeg ● SGI – Saskatchewan ● You can apply anywhere!

Actuaries at School Science Route 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 Business 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 Bachelor of Commerce In Actuarial Math Direct admission criteria: ● High school graduation ● Five full grade 12 credits in courses designated S, G or U ● Over three courses (Pre-calculus 40 S or Applied Math 40 S, plus English 40 S, plus one other 40 S course) ● Minimum 60% grade in each, and ● Minimum 85% average over the three courses

Actuaries at School Business Route What to take in Year 1 ● 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

Perks at the University of Manitoba ● 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 25

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_centr es/dept/actuarial click on Student Resources & Programs & then Requirements ● Useful Website for more information ● http: //www. beanactuary. org/