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page viii
Table of Contents
INTRODUCTION
THE SCOOP
Actuaries and Actuarial Science
The Lowdown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
A Brief History of Actuaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Actuaries Today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
The Actuarial Societies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Industry Trends
19
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Pension Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Corporate America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Career Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Rising Up the Ladder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
GETTING HIRED
27
Where to Start
29
Personality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Undergraduate Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Graduate Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Internships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
The Big Ones: Actuarial Exams
45
Exam 1/P . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45

Exam 2/FM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
Exam M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
Exam 4/C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
Exam for Course 6 (Finance and Investments) . . . . . . . . . . . . . . . . . . . . . .56
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ix

Table of Contents
ON THE JOB
Career Decisions
59
61
Starting Out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61

Hitting a Wall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
Career Transitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64
Making it to the Top . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
Lifestyle
67
Salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
A Word on Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
Other Pros and Cons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
The Nitty-Gritty: Types of Actuarial Careers 73

Actuaries in the Insurance Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
Actuaries in the Pension Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Actuaries in the Financial Services Industry . . . . . . . . . . . . . . . . . . . . . . . .77
Consulting Actuaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
In-House Corporate Actuaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
Actuaries in Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
FIRM PROFILES
85
Aegon USA, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86

Aetna . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
AIG American General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94
Allstate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97
Aon Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Arkansas Blue Cross Blue Shield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103
AXA Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106
Blue Cross and Blue Shield of Massachusetts . . . . . . . . . . . . . . . . . . . . .108
Buck Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112
Chubb Group of Insurance Companies . . . . . . . . . . . . . . . . . . . . . . . . . . .114
CIGNA Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116
CNA Financial Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122
Conseco, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124
Deloitte Consulting LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125
x
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Table of Contents
Ernst & Young LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

Farmers Insurance Group of Companies . . . . . . . . . . . . . . . . . . . . . . . . . .133
GEICO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135
Genworth Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140
The Hartford Financial Services Group, Inc. . . . . . . . . . . . . . . . . . . . . . .142
Hay Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Hewitt Associates LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
Highmark Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .149
Lincoln Financial Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .151
Mercer Human Resource Consulting LLC . . . . . . . . . . . . . . . . . . . . . . . .154
MetLife Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157
Milliman, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .159
Northwestern Mutual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162
Penn Mutual Life Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . .164
PricewaterhouseCoopers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .167
Prudential Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .170
The Segal Group, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
State Farm Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .174
Towers Perrin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .179
The Travelers Company, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .183
UnitedHealth Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185
UnumProvident Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187
Watson Wyatt Worldwide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .191
WellPoint, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .202
RECRUITING FIRM DIRECTORY
205
S. C. International, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .207
APPENDIX
209
Answers to Exam Sample Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .211

Recommended Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215

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Introduction
Sometimes bad things happen. Now and then, good things happen, too. And
one could make the case that people-and companies-spend most of their time
trying to avoid the bad and maximize the good. Some people even do that for
a living, and in todays complex business environment, actuaries are the
masters of identifying, mitigating and minimizing risk.
Once primarily working in the insurance industry, actuaries are now found
throughout corporate America, helping executives make intelligent and
informed financial decisions. In addition to helping insurers mitigate the
chances of losses, actuaries weigh risk in pension funds, stock and bond
portfolios and even hedge funds.
And the actuarys role has moved beyond the financial industry. Companies
dealing in commodities, such as oil conglomerates or mining concerns, use
actuaries to help weigh the risks and rewards of new exploration or current
pricing strategies. And nearly any company can now employ an actuary to
help determine and alleviate risks for any business venture-launching a new
product, perhaps, or expanding production facilities.
Its inaccurate to say that actuaries hate risk. Theyll be the first to tell you
that risk is an inherent part of doing business-an inherent part of life, reallyand that their job isnt to avoid risk. Instead, they face risk head on, weighing
the chances of any given eventuality and coming up with solutions to take
advantage of the good possible outcomes and minimize the fallout from the
bad.
An actuarial career is one of the most creative options a statistician,
economist or mathematician can have. We are the academics in the business
world, says Ron Gebhardtsbauer, senior pension fellow at the American
Academy of Actuaries. Yes, a strong mathematics background is necessary,
but applying those skills to real-life situations is a creative challenge.
Actuaries are required to think beyond the narrow constraints of numbers or
business plans to ferret out unforeseen risk and plan for it. The combination
of out-of-the-box thinking and scientific analysis makes actuarial careers
some of the most challenging in the business world.
Theyre also among the most rewarding jobs out there. Salaries right out of
college range from $40,000 to $50,000, and by the time youre finished
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Introduction
taking all of the necessary licensing exams and have some experience,
$150,000 to $250,000 salaries arent uncommon.
An actuarial career demands diligence and hard work. In addition to college
and university experience, the Society of Actuaries and the Casualty Actuarial
Society-the two main organizations within the profession-offer a series of
exams, which many employers require. There are no less than seven exams
for actuaries to become associates of the CAS, and another two for full
fellowship. The SOA has a point-based system of courses and exams, but the
result is the same. Be prepared to take a lot of tests throughout the early part
of your career, even before you receive your bachelors degree.
As an actuary, youll be weighing in on major decisions every day, and your
analyses will be used by top decision makers in the financial world. To say
that the actuarys work can make or break a company isnt the massive
overstatement one would think. When companies venture into unknown
territory, its the actuary that helps navigate a path.
That can lead an actuary to greater responsibilities within a company.

Actuaries have gone on to numerous C-level positions throughout corporate
America, including chief financial officer, chief operating officer and chief
executive officer. (The recent creation of the chief risk officer position,
despite its seeming relation to actuarial science, is primarily a role for
companies regulatory compliance chiefs.) Who better to manage a company
than someone whose career is based in managing and overcoming risk, after
all?
There are also roles for actuaries beyond the Fortune 500. Some actuaries
join consulting firms, providing risk-management services to small to
midsized companies, and even large firms will go outside to a consulting firm
for a special project now and then. Actuaries also manage pension funds, one
of the oldest and most respected roles of the actuary. And the federal
government is making increased use of actuaries in reducing government
spending and preparing to manage risk-financial, social, even military.
In this book, we will discuss the ins and outs of actuarial sciences and its
evolution through the 20th Century. Well look at the different ways actuaries
are employed in the insurance industry, other parts of the financial services
industry and the rest of corporate America. Well also take a look at actuaries
working for government and nonprofits.
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Introduction
Well also discuss the basic and ongoing education for actuaries, and how you
can prepare for a career as an actuary. Finally, well tell you about real
actuaries throughout the nation and the different roles they play.
Actuarial careers are widely regarded as some of the best in America. This
book will show you how to get there.

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ACTUA
CAREE
GUIDE
THE SCOOP
Chapter 1: Actuaries and Actuarial Science
Chapter 2: Industry Trends

CAREER
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Actuaries and
Actuarial Science
CHAPTER 1
How about a career in a growth industry, with long-term security and welldefined performance metrics? Throw in immense intellectual challenges, the
opportunity to work with some of the brightest minds and most powerful
companies in the business world, and even the chance to climb to the top
ranks of American executives. Oh, and lets add one of the best base salaries
in the American workplace and consistent rankings in a variety of best jobs
in America surveys.
Interested? Welcome to a career in actuarial science.
The Lowdown
Once considered an esoteric niche for accountants at insurance companies,

actuaries are now some of the most respected and essential employees in the
corporate world. They wield a combination of solid mathematics and out-ofthe-box thinking to assess risk and project outcomes for a variety of
businesses. They are the wizards of the corporate world, and are increasingly
used to determine the course of the future for numerous companies.
Most actuaries can be found at insurance companies, where they model the risks
associated with paying out insurance premiums for a variety of unforeseen or
unknowable events. They also help manage pensions, government entitlement
programs and college endowments, which rely on future assumptions. And
increasingly, theyre being called upon to assess risk throughout the corporate
world, from hedge fund investments to new product launches.
Its all about risk

Actuaries measure and manage financial risk through applied mathematics. Its
a deceptively simple job description, but one with practically infinite variations.
Stepping out in front of a moving car has very well-defined risks. Managing the
risk of a life insurance policy covering two million people, all in different stages
of life and with different health profiles, has a bit more to it.
But even the simple problems are deceptive. Lets revisit the risk of stepping
out in front of a moving car. Certainly, theres a risk that the wayward
pedestrian gets hit. But what if the driver swerves? Are there cars in the other
insider firm profiles, message boards, the Finance Job Board and more.
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lane? If so, what kind of cars? The difference between swerving into the path
of a Toyota Camry and an 18-wheeler is profound. And what about the cars
behind the car in front of which the pedestrian stepped out? What if the
person hit by the car is thrown into the other lane? Or the sidewalk? As you
can see, one simple (and admittedly macabre) action has a million possible
outcomes, and a million possible risks involved. Of course, in this case,
having the pedestrian not walk into the street mitigates all of those risk
factors.
The above example consists of one variablewhether the pedestrian takes
the wrong step off a curb. Now ponder how an actuary might manage risk
within a life insurance company with two million policyholders. The life
expectancy of one person takes into account hundreds of variables, including
eating habits, smoking, drinking, where the person lives, what he or she does
for a living, family life, number of children, pets, family history of illness
the list goes on. Then multiply that by two million, and finally ask yourself
the big question: How much should each person pay each month so that the
company can fulfill its payout obligations to each and every one of them at
the end of their lives, whenever that might be?
Answering that question is at the very core of what actuaries do. Through
advanced probability models and statistical analysis, actuaries make the
assumptions needed to ensure that insurance policies, pensions and other
financial programs meet their obligations and, ideally, make a profit for the
companies running them.
A Brief History of Actuaries

Ancient roots
The basis for actuarial sciencefiguring out how much resource is needed to
cope with a given outcomedates back to ancient times. The funeral societies
of Rome, wherein each member chipped in regularly to pay for the funerary
services of members when their time was up, was the first forerunner of life
insurance. And naturally, someone had to figure out how much each member
would have to pay to cover the upcoming funerals of the aged among them.
These calculations were rough, but given the small number of people in such
societiesa few dozen to several hundredit was relatively easy to estimate
upcoming deaths and the associated costs.
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From the fall of Rome, however, it took mathematics and business theory more
than 1,000 years to get to the point wherein they could be advanced further.
Edmund Halley was best known for discovering of the comet that now bears his
name. However, he also helped found modern actuarial science. In 1693,
Halley made a study of the population in the German town of Breslau. Through
careful recording of births, deaths and the aging population, Halley compiled a
mortality table. That bit of mathematics, using probability theories developed
just a few decades before, allowed Halley to accurately predict the likelihood of
a given person dying in any given year.
That, in essence, is the very foundation of the life insurance industry. By the
ability to predict life expectancy, Halley was able to determine how much to
charge a given person in premiums to cover burial costs. A generation later,
English mathematician James Dodson created an entire framework for the
creation of a mutual life insurance company, but died in 1757five years
before the Society for Equitable Assurances for Lives and Survivorship was
founded in London. The term actuary was coined in London in 1762 by the
Equitable, which first used scientifically calculated premium rates. The term,
which referred to the Equitables chief executive, had previously only been
used in church courts in reference to those who recorded the acts of the
court. (Equitable Life continues to this daythough a pension crisis in 2000
nearly caused the company to collapse.)
Modern actuaries
Life insurance companies thrived in London, and by the dawn of the 19th
Century, they had taken root in Englands former colonies. According to the
Society of Actuaries, the first actuary active in the nascent U.S. was Jacob
Shoemaker of Philadelphia, who in 1809 helped found the Pennsylvania
Company for Insurances on Lives and Granting Annuities. Other companies
followed, and the first mutual life insurance companies formed in the 1840s
through the creation of Mutual Life of New York and the New England Mutual
of Boston. It was also around the time when the first independent consulting
actuary in the U.S., John F. Entz, began a career that spanned 32 years and paved
the way for the introduction of actuarial science into individual companies
through management of insurance policies and pensions.
The forerunner of modern actuarial societiesand thus modern actuary
sciencewas created on April 26, 1889, at the end of a two-day meeting at
New York Citys Astor House. The new Actuarial Society of America was the
latest in a long line of failed attempts at organizing the nations actuaries, but
this time egos were put in check and mutual respect thrived. Indeed, the
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actuarial industry showed early signs of diversity with the ASAs inclusion of
its first female associate, Emma Warren Cushman of Boston, in 1895. The
societys examination system, which has grown into a full series of industryaccepted educational and qualification tools, was first implemented in 1896,
with the first Fellow of the Actuarial Society of America accepted in 1900.
Actuarial science in the 20th century

The 20th century brought rapid changes to the insurance industry and the
broader financial sector that helped advance actuarial science and actuaries in
the eyes of the business world. Property and casualty insurance grew, and in
1914, the Casualty Actuarial Society (CAS) was founded. Life insurance
companies offered the first health insurance policies in the 1920s, which
required entirely new areas of risk analysis from actuaries. The same can be
said for the introduction of group insurance, as well as the beginnings of
actuarial involvement in pension plans. World War I and an influenza
outbreak in 1918 challenged the evolving profession, and greater trials came
during the Great Depression of the 1930s and the introduction of Social
Security. The latter, however, created new opportunities for actuaries to work
for the federal government, which had, in essence, created a pension system
for the entire country. Government actuary work has grown since, and today
actuaries work throughout local, state and federal governments.
In 1949, the growing need for standardized education and certification

prompted the Actuarial Society of America to merge with the American
Institute of Actuaries to form the Society of Actuaries (SOA), which
continues to thrive and, along with the CAS, creates and maintains the
standards for actuaries nationwide.
Technological advances
The introduction of early computers in the 1950s was a blessing for actuaries,
and as assessors of risks and benefits, they were naturally quick to recognize
the potentialthe SOA hosted an International Congress of Actuaries in 1957
specifically to discuss electronic data processing. The SOA and CAS also
began working together to update their examinations to take computing
advances into account, which, of course, has continued to the present day.
As the tools improved, so did the challenges. In addition to insurance (life,
casualty, property, health and newer variations), actuaries were increasingly
used to predict the needs of pension plans. New and, some say, controversial
accounting systems adopted by the insurance industry in the 1970s left many
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actuaries with far more important roles in ensuring those companies had
proper reserves. And, of course, inflation and economic turmoil through the
1970s left the entire business world, let alone actuaries, gasping for air.
The last quarter-century

The 1980s brought some stability, but high interest rates brought about new
problems and opportunities for actuaries and those they served. One problem
was that the cost of borrowing money was very high for the companies
actuaries serveda huge risk, especially taking into account unforeseen
eventsbut on the flip side, those high rates made rate-bearing investments,
which had far less risk than the stock market, pay returns that were almost
unheard of. Actuaries also had to create new insurance, annuity and
investment products in this environment, all of which seemed almost generic
when interest rates guaranteed substantial returns.
Sharply increasing life spans, starting in the 1970s and continuing through today,
have challenged actuaries in the insurance and pension businesses. Insurers and,
especially, pension funds managed to ride the dot-com wave of the 1990s,
building up their reserves through timely investment in the stock market.
Thanks to the hard work and foresight of their actuaries, most were diversified
enough to avoid the subsequent crash, though a few certainly struggled as Alan
Greenspans irrational exuberance warnings went unheeded.
In the new century, actuaries have seen numerous new opportunities. As stocks
crashed, hedge funds became less about hedging and more about seeking profits
wherever possibleand actuaries have been increasingly used to analyze the
risk-reward potential of a massive number of new investment ploys. Enrons
collapse certainly signaled the importance of actuaries throughout the financial
sector as more complex transactions take place. (Of course, in that case, the
actuaries were mostly kept in the darktheres only so much anyone can do if
they dont know whats going on!) The corporate accounting scandals have also
prompted many reforms, most notably the Sarbanes-Oxley corporate
governance law, and actuaries have been at the forefront of determining the risk
mitigation and management requirements for thousands of companies.
Actuaries Today
Today, actuarial careers have grown well beyond the insurance industry, though
insurers remain a major employer of actuaries and also help further the thinking
behind actuarial science. Pension funds, another traditional standby for actuarial
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careers, are evolving and giving actuaries new challenges and opportunities.
Actuaries are also finding new directions elsewhere in the finance sector, some
at traditional Wall Street firms as well as hedge funds. Other corporations, ones
not necessarily involved in finance, often employ actuaries, either on a
consulting basis or full time, to help make important business decisions. And
governments at the federal, state and even local levels are finding actuaries an
important piece of their budget and planning processes.
Outside finance, however, theres a variety of risks and rewards that can be
measured by actuaries. These can be as simple as running numbers on vendor
bids and their potential services, or as complex as determining whether a
product line will be profitable.
Heres a look at the most popular career choices for actuaries today:
The insurance industry
The insurance industry wouldnt be a reality without actuarial science and its
practitioners. The calculation of risk versus benefit is core to ensuring a
profitable insurance business. The near-constant change in regulations and
requirements for the industry means theres plenty of work for actuaries. In
addition, many insurers are entering other financial fields to boost profits, so
actuaries are often deployed to ensure these annuities, savings programs and
other instruments fulfill the companys fiduciary duties to the customer and
still turn a profitall while adhering to insurance company regulations and
the actuarial code of professional conduct.
The challenges for actuaries in insurance continue to evolve. The introduction
of a new automobile model can result in many weeks of actuarial work as the
safety and performance features of the cars are studiedeven the automakers
targeted sales demographics make a difference. In health and life insurance,
medical breakthroughs alter not only the equation of life expectancies, but also
the companies cost structures. The reason health insurers sometimes cannot pay
for experimental treatments is because the insurers actuaries feel it wouldnt be
able to cover the costs of everyone wanting the treatment.
Actuaries working in insurance tend to specialize quickly, and often know as
much about what theyre insuring as they do about actuarial science itself. An
actuary working for a health insurer develops a good working knowledge of
medicine and pharmaceuticals, while an actuary working on policies for
cargo ships develops a keen awareness of how the shipping industry works.
The more the actuary learns, the better he or she is at the job. However, that
also makes transitioning to different actuarial fields more difficult as the
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actuary becomes known for his or her insights. Its a good thing I like health
insurance, one actuary quipped. Otherwise, if I tried to find another job,
Id have a hard time branching out.
MetLife remains one of the largest and best-known life insurers in the world,
while St. Pauls Travelers Group, a stitched-together conglomerate of various
insurers, remains a force in casualty insurance, like Allstate Corp. and State
Farm. HMOs such as HealthSouth and UnitedHealth Group are some of the
largest employers of actuaries in the health insurance industry.
Pension funds
With the rise of 401(k) plans over the past 25 years, Americas pension plans
are quickly going the way of the dinosaurs. Employers favor 401(k) plans
because, in essence, its up to the individual employee to maintain the plan
and build toward his or her retirement, and the employer does not have to
guarantee a set payment once the employee retires. In essence, 401(k) plans
take the money that would have gone into a pension and gives it to the
employee to invest and manage.
For actuaries specialized in pension plans, that can sound like a death knell
for their careers. However, there is still plenty of opportunity for pension
plan actuaries. For one, most government workers still receive pensions, and
that likely will remain the case for at least another generation. Federal, state
and local workers all have pensions that need to be managed by actuaries so
that the funds performance can ensure regular payments through the
employees retirement years. And even as corporations wind down their
pension plans, actuaries are needed to ensure that the fund can still pay its
retirees the promised benefits before it is closed.
A pension fund, of course, needs to ensure that it will have enough money on
hand to pay all of the benefits it owes. Thus, pension funds measure the riskreward of every investment they make. No fund would pile into a single upand-coming stock, no matter how good it lookedtheres always a chance
the fund could lose everything. Thus, a fund will be more conservative,
investing in bonds and other fixed-income instruments with less risk and
stable returns. The actuary weighs that risk and return every day.
The federal government and most state governments offer pensions for their
workers. The California and New York public-sector pension funds are two
of the biggest and most active in the country. As major shareholders in a
variety of public companies, they often use their stake as a bully pulpit to
push for better corporate governanceand ideally, boost share prices.
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Working for a pension fund doesnt have the specialization trap that
working for an insurer can bring. Indeed, many pension actuaries make
successful transitions into the broader financial services industry.
Broader financial services

Any given day, a hedge fund manager might ask, How much money can I put
into the currency markets, with a 400-to-1 leverage account, to maximize
returns while reducing risk? Lets translate that into English. A hedge fund
wants to play the foreign exchange market. It has the opportunity to receive
$400 in credit for every $1 it puts in, but a wrong move means that the fund
could lose its entire stake in just one trade. Enter an actuary, who can help
assess the current state of the foreign exchange markets, the hedge funds
finances, how much the fund could afford to lose if the bet turns bad and how
much it could stand to gain while still paying back the 400-to-1 credit terms.
The actuary can also devise a hedging strategyanother investment that, while
costing less, would help offset losses should the first investment go south.
As you can see, actuaries have critical skills that major institutional investors
can use to maximize their returns. From the proprietary trading desks at the
major Wall Street firms to mutual funds, hedge funds and a staggering variety
of investment vehicles, actuaries are there to give investors as much of an
advantage as possible by assessing and mitigating risk.
Finance can be a somewhat rough-and-tumble world, especially for actuaries

used to the more staid insurance or pension industries. Its fast-paced and
stressful at times, but the monetary rewards for actuaries able to handle the
pace are much larger than in other areas of actuarial work.
Elsewhere in corporate America

Increasingly, corporations are using actuaries to mitigate a variety of risks
and squeeze out every last cent of profit or cost savings that could help
increase shareholder value. Take, for example, a restaurant chain choosing
between three different sites for its newest eatery in a given city. An actuary
would certainly be consulted to discuss the various insurance costs associated
with each site. Additionally, the actuary can assess broader population trends
and which potential customers are nearest to a given site. They can run
probability statistics on how well other restaurants have done in similar sites
around the countrydoes a restaurant placed near a rival actually perform
better? The actuary can answer that.
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Expansion always brings financial risks, and actuaries can help any kind of
company mitigate those. Whether its a new branch outlet, a new product line
or even simply increased or decreased production, actuarial projections can
give a company critical insights into its potential moves.
Few companies outside the financial sectors employ full-time actuaries not
connected with their human resources or benefits departments. In these
cases, consulting actuaries are called in to render advice. At smaller
companies, the HR actuary might even do double duty, assessing the risk of
a potential move while administering insurance policies, for example.
Governments and nonprofits
Government entitlement plans are a lot like pension plans in the way actuaries
manage risk, though working for the government certainly poses a unique
challenge. For example, actuaries have been at the forefront of warning calls
regarding the solvency of Social Security. The math here, of course, is
depressingly simple: baby boomers are getting older and are living longer. Baby
boomers also outnumber the next generationthe ones paying into the Social
Security program. More benefits plus fewer incoming dollars equals a
serious problem. The actuaries managing Social Security have their jobs cut out
for them.
Actuaries are also used throughout government programs. Medicare and
Medicaid have similar structures, as do a variety of housing and grant programs.
Actuaries are even used by the Department of Defense to help project risks in
deployment and the costs associated with those risks. And the Treasury
Department has a staff of actuaries to project tax income for the budgeting
offices of the various federal agencies. Local and state governments use
actuaries in a similar manner.
Outside of government, actuaries have had successful careers in a variety of
nonprofit environments. College endowments, for example, are run by
money managers, but its the actuaries who tell the money managers how
much they need to make and how much risk they can take on in order to do
so. And nonprofits have insurance programs and activity risks much like any
corporation would. Consulting actuaries can find work here as well.

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The Actuarial Societies

As weve discussed, there are two professional societies that, in essence,
regulate the actuarial professionthe Society of Actuaries and the Casualty
Actuary Society. The SOA is the chief umbrella group for all actuaries, while
the Casualty Actuary Society focuses on the application of actuarial science
to the property and casualty insurance industries.
The Society of Actuaries is an educational, research and professional
organization that regulates and promotes actuarial science and actuaries. The
societys testing regime is the standard by which all actuaries in the U.S. and
Canada are measured. It also researches the latest trends in actuarial science,
and promotes the industrys interests through government outreach and public
relations work.
The Casualty Actuary Society has a similar role in the casualty and property
insurance industry. It also has a testing regime to measure the abilities of its
actuaries, and likewise promotes casualty actuaries and their place in society
through public policy statements and public relations.
Membership
Actuaries are generally members of one or the other, though a few actuaries
that transition to or from casualty or property insurance work find themselves
members of both at some point in their careers. Their testing regimes are
similar, and they use the same tests in a handful of instances when measuring
basic actuarial science knowledge amongst their members.
Most actuaries aspire to become fellows of one of the two societies. The title
is recognition of their hard work and continuing education in the field, and
fellows are seen as leaders in the industry. The vast majority of working
actuaries are at least associates of either the SOA or the CAS, which means
theyve completed a basic testing program and are considered fully capable
of handling most actuarial work.
Membership at any level requires testing and, of course, membership fees. But
the benefits of membership include access to extensive research and studies
within the field and many opportunities to network with peers. Both societies
run conferences, job boards and outreach programs that are immensely useful to
actuaries just starting out, and both societies have incredibly detailed and useful
web sites for those interested in learning more about the field.
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I think the societies are pretty good at making sure were well trained and
able to handle anything, says one associate. That said, you get out of them
what you put in. At times, you have to put in quite a bit more. When it comes
to networking and research, that sort of thing, you have to sift through a lot
to get what youre after.
Well discuss the societies, and especially the testing programs, later on in
this guide.

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n l e y | OLD
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JPMorgan
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HSBC
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Moody's
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Young
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Legg
Mason
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JPMorgan
Chase
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HSBC
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Moody's
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Young
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JPMorgan
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HSBC
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Moody's
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Young
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Industry Trends
CHAPTER 2
Actuarial science is ever-evolving, as is the role of the actuary in modern
business. Actuaries are constantly being called upon to apply their skills to a
wide variety of tasks, both within their core fields of insurance and pension
management, and in other areas of business. Heres a look at the recent trends
for actuaries in different businesses:
Insurance
The insurance industry is undergoing an incredible sea change, as companies
find themselves part of larger financial conglomerates. Insurers have been put
in the uncomfortable positions of having to answer to noninsurance
professionals. Top-level executive posts, once the domain of actuaries
responsible for maintaining solid coverage plans, are now going to
professional executives focused on solidifying shareholder value, costcontainment and bottom-line results. Some actuaries report dictums from on
high that pressure them into altering their models for better results. A few fear
that its only a matter of time before insurers find themselves in a financial jam
from an unforeseen occurrence that was not properly modeled.
Improvements
Yet the technology and actuarial science behind it continues to improve.
Better computing power lets actuaries model more variables in any give risk
profile, allowing for more accurate projections. Actuarial science is still
based on assumptions, but now those assumptions can be thoroughly vetted
and explored to a point unheard of just a few years ago. For now, the
improvements in thinking and technology have allowed actuaries to meet the
demands of their corporate leaders without sacrificing fiduciary values.
Again, however, the pressure on insurance companies to perform for
shareholders remains a top concern.
That pressure may lead insurers to be taken private in the coming years.
Private equity emerged as a major acquisition force in the markets in 2006,
and the lure of going private is enticing for many public companies tired of
quarter-to-quarter performance measures without being able to take a chance
on growth. GEICO and General Re, for example, benefit from being part of
Berkshire Hathaway Inc.while publicly traded, Warren Buffetts
investment vehicle insulates these major insurers from the demands of
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The Hiring Process
shareholders. Thats primarily due to Buffett, but privately held companies

often experience the same kind of autonomy.
Challenges
Insurers may also continue to explore merging with other major financial
companies, though Citigroups failed experiment with the Travelers Group
may prove a deterrent. Citicorp and Travelers merged in 1998, but it became
apparent within a few years that the insurance exposure meant a risk to the
overall companys profits. Investors in insurance companies, after all, know
that a disaster like Hurricane Katrina could severely harm profits. Citigroup
decided to divest its insurance underwriting businesses. It first sold Travelers
Property and Casualty to the St. Paul Group in 2004, which formed the St.
Paul Travelers Companies. The following year, Citigroup sold its life
insurance underwriting arm to MetLife. Citigroup still sells insurance under
the Travelers umbrella, but no longer underwrites the policies. Indeed,
most major financial corporations will sell insuranceas long as someone
else is underwriting it.
Insurance wasnt something we were prepared to do, one Citigroup
executive said after the divestitures. A money center bank like us, were a
profit machine. Good times and bad, we can make money on it. Insurance
isnt like that. Theres only so much risk you can mitigate, and a major
disaster isnt something that you can easily deal with.
The insurance sector remains the top employer of actuaries, and we will
discuss insurance in more detail later on in this book.
Pension Funds
Private pension plans
More and more, pensions are seen as a burden on corporations and their
shareholders, and more companies are struggling under the weight of
generous plans from a generation ago. The airline industry, in particular,
shows how a pension plan can weigh heavily on companies already
struggling in other areas. The Pension Benefit Guaranty Corporation, a
federally created agency that takes over struggling plans, helps protect
pensions from corporate cutbacks and bankruptcies that threaten the benefits
of more than 44 million people. Sadly, some pensioners never receive the full
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The Hiring Process
benefits promised them, but the PBGC does salvage many plans that
Americans rely on for their retirement.
Most plans, however, are ended by employers without having to resort to
PBGC protections, though the PBGC does have oversight when a company
ends a pension plan. Corporations simply say that employees hired after a
certain date will no longer enjoy pension benefits. In the vast majority of
cases, the money instead goes into a 401(k) account. That frees the company
from the cost of not only maintaining a pension plan, but also any risks
associated with higher-than-expected payouts for employees. Once a
company decides to end a plan, it is required, in most cases, to provide
benefits to workers who have already paid into the plan. Sometimes,
pensioners will receive full benefits, and actuaries will be involved in making
sure the plan is well invested to provide those benefits for a generation to
come. Other times, the plan ends, no new money is received and pension
benefits are frozen at a given amount for each worker, based on seniority and
payments into the plan. Again, those plans will continue to exist, under the
oversight of actuaries, until all benefits are paid.
Wrapping up a pension plan is a massive challenge for actuaries. Many have
been put into the position of defining what their fellow employees will
receive, or even if the plan must be handed over to the PBGC under duress
due to the burden of payment on the company. Private pension plans are on
their way out, and actuaries must shepherd them out of existence over the
next 50 years while protecting as much of the benefits as possible.
Government pensions
Government pension plans, on the other hand, remain a key attraction for
employees, and few of these have been phased out. Some feel its only a
matter of time before local, state and even the federal governments move to
replace defined-benefit plans with defined-contribution plans like 401(k)s.
However, until that time, government pension plans remain the biggest
employer of actuaries in this field.
Currently, government pension plans are becoming far more active as
shareholders in corporations, and their operations are becoming far more
complex. CalPERS, the California Employees Retirement System, provides
retirement and health benefits to 1.5 million families, and generated an
estimated $30 billion in revenue in 2004 and 2005. It has used its financial
muscle to stand up for workers rights in a number of corporate shareholder
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bonds. CalPERS and other pension plans have increasingly looked to hedge
funds for returns, and recently CalPERS announced it was looking to invest
in China. This can provide an immense challenge for actuaries seeking to
define the risks associated with these investmentsall while ensuring
benefits for an aging population.
Financial Services
At first glance, Wall Street appears to be far less risk-adverse than it was just
a few years ago. The rise of hedge funds can be accountable to some extent.
They were initially designed as hedges against drops in the markethence
the name. The funds were created to provide total positive returns in all kinds
of market environments, from raging bull markets to outright depression. Yet
in recent years, hedge funds have taken the promise of absolute returns to a
new level. They now invest in nearly anythingcommodities, currency,
credit instruments, real estate, distressed companies and, of course, stocks
and bondsin order to generate monster returns for their clients.
Those same clients are also shareholders in many financial services

companies, and have pressured Wall Street firms to come up with equally
impressive returns. As a result, the proprietary trading desks of many Wall
Street companies have, in effect, become hedge funds. In 2006, investment
banks large and small derived the majority of their profit growth from highly
aggressive prop trading. More companies are putting more assets at risk
every day in the marketplace.
Smart hedge funds and investment banks use actuaries to help determine the
risk involved in a given investment and to create hedges that can minimize
losses. These risk models are incredibly complex, with thousands of moving
parts and assumptions that can be invalidated in seconds. This is the cutting
edge of actuarial science, flying by at blinding speeds. Its a heady challenge
for actuaries used to conservative estimates and careful risk assessments that,
heretofore, would take weeks to accomplish. Yet it seems to be working, thus
far.
Of course, these institutional traders have exit strategies built into their risk
models. But some question whether the cascading effect of multiple exit
strategies, executed at nearly the same time, could make the market
environment far worse than projected. Most markets, whether they be stocks,
bonds, currencies, credit or commodities, have yet to really see the impact of
a major disruption since the advent of these aggressive trading strategies.
That makes modeling the risk involved a tremendous task. It also raises the
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question of the implied risk to those remaining in the marketsomething that

some actuaries are already trying to figure out.
Needless to say, there are huge challenges for actuaries in the financial
services industry, and that will mean continued growth and opportunity for
actuaries there.
Government
Increasingly, theres been a call by politicians and others to start running the
government as a business. While one could argue that fiscal conservatism has
fallen by the wayside, theres still a movement within government, at every
level, to contain costs, analyze risk and find ways to mitigate potential risks.
As weve discussed, entitlement plans are the immediate beneficiaries of the
application of actuarial science. But other areas of government are
increasingly using actuaries as well.
Hurricane Katrina
Hurricane Katrina, in 2005, was a wake-up call to many in government,

illustrating the need for better risk management. The Federal Emergency
Management Agency (FEMA) was largely ineffective in deploying its
resources in the wake of the storm, hamstrung in part by politics, but also due
to the failure of contingency plans. Actuaries model all kinds of risk, and find
themselves now working hard to ensure better returns on the deployment of
resources in emergencies such as these.
And just as the effects of the Gulf Coast hurricanes of 2005 rippled
throughout the country, so too did they ripple throughout government.
Actuaries involved in Medicare and Medicaid found themselves struggling to
cope with increased demands on resources. The military, already stretched
thin, had to readjust its risk profile to provide National Guard troops to the
area while fighting continued in Afghanistan and Iraq. Even the Postal
Service had to find ways to recover, continue to deliver the mail and, most
importantly, prepare for future catastrophies. And certainly, the local and
state governments involved are now busy working to mitigate the risk of
future hurricanes in the area.
The deployment of government resources, whether in a crisis situation or in
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Corporate America
Actuarial consulting firms receive increasing calls for their expertise in a
wide range of areas. Weve already discussed a few business planning
examples, but risk mitigation for existing businesses is becoming
increasingly important throughout the corporate world.
Corporations are sitting on the largest cash reserves in history, while their
appetite for risk remains at its lowest levels in history. Thus, they arent
necessarily investing heavily in new businesses. Instead, they are offering
cash dividends to shareholders and repurchasing their own shares in order to
increase share prices.
Yet actuaries are already working with some companies to better invest that
free cash to maximize value and minimize the tax risks associated with
keeping so much cash on hand. In many ways, these cash reserves are
becoming mini-hedge funds. Microsoft even has an investment team,
including an actuary, to manage the cash it has accumulated through the
years.
Companies also hire independent or consulting actuaries to help manage a
variety of activities. Certainly, consulting actuaries can help a company
manage its insurance policies. They can identify risk areas and develop
mitigation plans in current activities. They can even help in product launches
by identifying potential markets, looking at the risk new production would
have on current product lines, and even in pricing new products to best take
advantage of current consumer trends.
Career Trends
As you may have surmised by now, actuarial work is a growing, evolving and
exciting field. Its a core part of the insurance and pension industries, and is
becoming indispensable in government and throughout corporate America.
And as befits an increasingly critical skill set the pay is quite good.
Benefits
Actuaries are constantly rated as having some of the best jobs in America
with regard to not only salary, but also the hours, the lifestyle and relevance
to the world at large. Starting actuaries can expect salaries up to $60,000 per
year right out of college, while established actuaries can pull in up to
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$250,000 per yearand thats not including the possibility of advancement

beyond actuarial posts and into the upper echelons of the business world. Its
not unheard of for actuaries to become chief executives at top insurers and
HMOs. Increasingly, theyre also being called upon to serve as chief risk
officers in a variety of companies, assessing not only financial risk, but also
regulatory compliance as well.
Demand
Demand for actuaries remains high, not only for their increased visibility in
the business world, but also because of their high level of education and
training. Becoming an actuary requires a very good knowledge of advanced
mathematics, as well as the creativity to apply mathematics in unique ways
depending on the situation. That combination makes good actuaries hard to
findwhich only bodes well for the job seeker with the appropriate skills,
creativity and certifications.
The one drawback in this career is that, for highly motivated people, actuaries
tend to level off at a certain point. Most actuaries live very comfortable lives,
but even at insurance companies and the like, there are only so many top
spots. The expansion of actuarial work into highly lucrative industries, such
as hedge funds and investment banks, has alleviated this situation somewhat.
And consulting actuaries can do quite well working for themselves, charging
a premium for their servicesthough the hours are certainly longer.
Still, there are few complaints from actuaries. There arent many 9-to-5 desk
jobs that pay as well as actuarial work, and the intellectual challenge is
immense. And there are few areas in advanced mathematics where you can
make an immediate difference in peoples livesthis is one of them.

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Rising up the ladder

Certainly, many actuaries have become top insurance executives, with
several serving in C-level positions in a variety of publicly traded
companies. Despite the recent trend of having career executives take
over these top jobs, actuaries with a strong business background can
find themselves secure in the corner office of an insurance company
someday.
Yet there are other avenues for advancement.
Watson Wyatt
Worldwide, the British consulting firm, has John J. Haley, a Fellow of
the Society of Actuaries, as president and chief executive officer. And
Greg Cooper, a Fellow of the Institute of Actuaries of Australia, was
recently named chief executive of Schroders Investment Management
Australia.
Actuaries are also at the forefront of change in their traditional

industryinsurance. Arthur Carlos, FSA, was recently named as
president and CEO of Destiny Health, a unique health insurance
provider that rewards participants for healthy lifestyle choices.
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ACTUA
CAREE
GUIDE
GETTING HIRED
Chapter 3: Where to Start
Chapter 4: The Big Ones: Actuarial Exams
Chapter 5: The Hiring Process

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CHAPTER 3
The actuarial field can be very compelling and attractive. There's intellectual
stimulation, the security of knowing you're in demand, and the pay is very
good. Yet few people can meet the exacting specifications of this kind of
work. That's not to say that you can't, or shouldn't, try. But you will need an
exceptionally keen and flexible mind and very good training to make it as an
actuary.
Personality
It would be easyand wrongto write off actuaries as cubicle-bound
mathematicians sporting pocket protectors, walled off on the lower levels of
the corporate headquarters. It would also be misleading to picture them as
financial oracles, charting the course of corporate America through their aweinspiring risk assessments that somehow border on wizardry.
The answer is somewhere in between. Actuaries do need to have a keen
analytical mind. Most have a penchant for problem solving and logic that
leads them to advanced mathematics. Not only must they be able to use
advanced calculus and probability theories to produce resultsthey really
have to enjoy it.
Yet there's the other side of the brain to consider. Mathematics, problem
solving and analytical skills need to be applied creatively. It's impossible to
think of every contingency, even when computing a basic life table for an
insurance company. But the actuary must be able to come up with
possibilities that can't easily be quantified.
For instance, the pharmaceutical industry has long worked on a "fat pill" that
would reduce obesity without resorting to diet and exercise. An actuary
working for a life insurance or health insurance company would follow
developments in this area closely, and be prepared for the day when such a
pill was ready for public consumption. After all, obesity is a leading cause of
all kinds of cardiovascular problems. The actuary would have to use creative
thinking, combined with extensive research, to forecast the impact this pill
would have on life expectancy, death rates due to heart disease and,
ultimately, the premiums customers would pay for their life insurance.
Actuaries must also be good communicators. What's the use of creating a risk
analysis for a major corporate venture if you can't easily explain it? The
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analysis and creativity involved must be finalized into a product that the
company, its customers and even the general public must be able to
understand. Good writing skills are important, as are the social skills needed
to navigate relationships between yourself and your superiors, your
customers and even the top executives in corporate America.
Personality types
Actuaries are generally driven people. That can be said for many in the
financial sector, but don't confuse drive with overt ambition. While many are
ambitious, an actuary's primary drive is to solve the problem, whether it's a
mathematical equation or a larger analysis of corporate risk with regard to the
upcoming hurricane season. Their drive focuses on the task at hand, and
many derive a great deal of personal and professional satisfaction simply in a
job well done. Given that most of these tasks would cause the average person
to walk away with a migraine, actuaries have reason to be proud.
Many actuaries seem to have a scientific bent. They seek to expand

knowledgebut in this case, it's knowledge of risk factors instead of
knowledge of broader science. Some say they feel like they're the discoverers
of new ideas or concepts. They take a broad topic or idea and drill down until
it is known as well as it possibly can be. They uncover all the risks possible,
find the probability for each, and discover the ways to mitigate those risks.
They are, in some ways, the explorers of corporate America, and they help to
chart unseen territories.
Other successful actuaries see themselves as leaders. They forge ahead,
guiding the rest of their company forward when they assess risk or determine
probabilities of future events. They enjoy the pressure that the job sometimes
entails, and they feel they're helping their companies out of the woods of
uncertainty. Some of these leadership types have become not only successful
actuaries, but also corporate executives in health care, insurance and even
broader financial sectors.
Undergraduate Education
The backbone of your future career in the actuarial field is your education.
There are certainly many fields an English or political science major can shift
to after college, thanks to the broad liberal arts education they receive.
Actuarial work is not one of those fields. You will need a thorough
understanding of advanced mathematics just to get through the first of many
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actuarial exams ahead of you, and advancement in your career will depend on
your continuing education not only in mathematics and actuarial science, but
also economics, finance and even hard sciences such as biology.
Successful actuaries are some of the most well-educated, trained and tested
people in white-collar America. And it all starts with your undergraduate
degree.
Undergraduate work
If you haven't yet attended college and obtained your bachelor's degree, you
can participate in the growing number actuarial science programs at the
undergraduate level in the U.S. and Canada. These majors (or, in some cases,
concentrations within an economics or business major) will give you a firm
foundation not only in the necessary mathematics, but in distinct actuarial
principles and their application in the business world.
The best programs cover all the information contained on the first two
Society of Actuaries/Casualty Actuarial Society examsin a handful of
cases, you may even earn college credit for passing the tests, or may need to
pass the two exams to graduate. They also cover up to 12 semester hours of
material that can be found on the third and fourth society exams. These
programs can truly give you a leg up as you begin your actuarial career. A
bachelor's degree in actuarial science and success in the first two exams will
put you in the top tier of candidates for any entry-level job in the actuarial
field. (Bear in mind it's probably unwise to try to tackle the second pair of
exams before graduating from college and getting some real-world
experience, unless your collegiate adviser thinks you're ready for the
challenge.)
Where to go
U.S.News & World Report's 2007 rankings of America's Best Colleges notes
that undergraduate actuarial programs and/or business programs catering to
would-be actuaries generally tend to go hand-in-hand with the best business
schools. The top two in the survey are the University of Pennsylvania's
Wharton School of Business and the University of Michigan.
The following is a list of universities with majors or concentrations in
actuarial science that the Society of Actuaries believes gives students an
advanced undergraduate education in the field.

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United States
Abilene Christian University
Ball State University
Boston University
Bowling Green State University
Bradley University
Brigham Young University
Bryant University
Butler University
Central Connecticut State University
Central Missouri State University
Central Washington University
Columbia University
DePaul University
Drake University
East Tennessee State University
Florida State University
George Mason University
Georgia State University
Illinois State University
Indiana UniversitySouth Bend
Lebanon Valley College
Maryville University of St. Louis
Middle Tennessee State University
New Jersey Institute
New York University Stern School of Business
Northern Arizona University
Northwestern College (Iowa)
Ohio State University, The
Ohio University
Oregon State University
Otterbein College
Penn State University
Purdue University
Queens College of City University of New York
Rider University
Robert Morris University
Roosevelt University
Southern Illinois UniversityEdwardsville
St. John's University (College of Insurance)
SUNY University at Albany
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Temple University
Towson University
University of Akron
University of California at Santa Barbara
University of Central Florida, The
University of Connecticut
University of Evansville
University of Illinois at Urbana-Champaign
University of Iowa, The
University of Louisville
University of Michigan
University of Minnesota, The
University of NebraskaLincoln, The
University of North Carolina at Chapel Hill, The
University of North Carolina at Charlotte, The
University of Northern Iowa, The
University of South Carolina, The
University of St. Thomas
University of Texas at Austin, The
University of Pennsylvania, The Wharton School
University of WisconsinEau Claire
University of WisconsinMadison
University of WisconsinMilwaukee
University of WisconsinWhitewater
Utah State University
Washburn University
Worcester Polytechnic Institute
Canada
Concordia University, Montreal
Laval University, School of Actuarial Science
Simon Fraser University
Universit de Montral
Universit du Qubec Montral
University of Alberta
University of Calgary, The
University of Manitoba
University of Regina
University of Toronto
University of Waterloo
University of Western Ontario
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York University
Mexico
Instituto Tecnolgico Autnomo de Mxico
Universidad Anhuac
Europe
City University, London
University of Lausanne, Switzerland
Asia
Peking University, Beijing, PRC
Africa
University of the Witwatersrand, South Africa

This is, of course, a very broad selection of schools, and there's enough
geographic, academic and cost difference to appeal to a variety of students.
Yet there are still other undergraduate colleges that the SOA believes offers
enough of an education to get you through the first two SOA/CAS exams,
while also offering other economics and finance courses. These schools don't
offer any majors, minors or concentrations in actuarial science, though with
the demand growing for such specialization, that may change. Until then, it
will be up to you to let your academic adviser know you're interested in the
actuarial field so that, with his or her assistance, you can create a course of
study that will result in a well-rounded, actuarial-focused degree in
mathematics, business or economics.
The following is a list of universities and colleges that offer a more
introductory, though still rigorous, program of study that can help you prepare
for the first two SOA/CAS exams:
United States
Arizona State University
Auburn University
Baruch College
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Baylor University
Bellarmine University
Beloit College
Benedictine University
Bentley College
Binghamton University
Brooklyn College
California Polytechnic State University
Canisius College
Case Western Reserve University
Central Michigan University
Clemson University
The College of New Jersey
Colorado State University
Concordia University (Seward, Nebraska)
Doane College
Elizabethtown College
Grand Valley State University
Harvey Mudd College
Howard University
Indiana State University
Indiana University Northwest
IUPUI (Indiana UniversityPurdue University Indianapolis)
Iowa State University
Kansas State University
Le Moyne College
Long Island UniversityC.W. Post Campus
Louisiana State UniversityShreveport
Luther College
Marist College
Memorial University of Newfoundland
Miami University
Michigan Technological University
Niagara University
Northwestern College (Iowa)
Pittsburg State University
Portland State University
Randolph-Macon College
Richard Stockton College of New Jersey, The
Rochester Institute of Technology
Siena College
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Siena Heights University

Slippery Rock University
South Dakota State University
Southern Utah University
St. Cloud State University
St. Lawrence University
St. Mary's College
St. Norbert College
SUNY College at Fredonia
SUNY College at Potsdam
Texas Christian University
Thiel College
University of Cincinnati, The
University of Delaware, The
University of Georgia, The
University of Idaho
University of MarylandBaltimore County
University of MichiganFlint
University of MissouriRolla
University of NevadaReno
University of North Carolina at Greensboro, The
University of Southern Mississippi
University of Tennessee at Martin, The
University of Texas at San Antonio, The
University of Toledo, The
University of Vermont, The
University of Virginia, The
University of WisconsinEau Claire
University of WisconsinPlatteville
University of WisconsinStevens Point
University of WisconsinStout
University of WisconsinSuperior
Valparaiso University
Western Kentucky University
Western Washington University
Canada
University of Windsor
Whether you decide to concentrate or major in actuarial science, or focus on
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rounded education. That means courses in economics and business, certainly,

alongside your advanced mathematics and statistics work. Sociology can
also provide great insights into actuarial work as you study populations in
motion and transitionpredicting those moves and transitions is a key part of
actuarial work. Psychology can also be beneficial, as can political science.
Those who want to work in the health or life insurance industries can benefit
from a few biology or premed courses as well. As mentioned earlier,
actuaries must think outside the boxthink of your undergraduate
coursework as your first peek over the side. Indulge your outside interests
and make sure you can be as conversant in social topics as you are in
probability mechanics.
Outside of coursework, you should be involved on campus and ideally gain
some leadership experience, or at least some experience working as part of a
team on various campus projects. And president of the math club won't cut
itemployers are looking for well-rounded individuals. Think about
leadership positions in student government, campus media, fraternity or
sorority houses and, especially, community outreach.
Finally, you should make it a goal to pass at least the first SOA/CAS exam by
the time you graduate. That means additional study time that won't mean a
whit when it comes to your degree, but it's critical to your future. If you're in
a serious undergraduate actuarial science programor if your advanced or
independent studies have readied you, you could even graduate with the first
two SOA/CAS exams already under your belt.
Graduate Education
There are three routes to think about if you're considering graduate school for
actuarial science. The first, put simply, is not to go. Some companies in this
field feel there's no better classroom than real-world actuarial work. Major
insurers and other employers have a variety of entry-level programs that can
assist you in gaining your footing and taking on increasingly difficult work.
Most employers will also sponsor your advanced coursework and exams
some will even require success before giving you greater positions of
responsibility, or even keeping you employed!
The second and third routes lead to graduate school. On the one hand, you
may wish to continue your studies in actuarial science in order to obtain a
master's or even PhD in actuarial science. The master's degree is welcomed
by many employers, while the PhD has more application in heavy-duty
academic researchthere's more call for doctorate-holders in academia than
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the business world or government. These advanced degrees certainly make

taking the actuarial exams easier, though there are many Society Fellows who
have nothing more than a bachelor's degree and a lot of hours in independent
study.
The third route open to actuaries is the MBA track. Increasingly, actuaries are
being called upon to join the upper ranks of corporate executives, and not just
in the insurance industry. A background in actuarial work, including the allimportant risk management and mitigation areas, combines well with a
variety of different MBA concentrations. A focus on investments would give
you an MBA that would dovetail well with your actuarial background and put
you in a prime position to catch on with an investment bank, hedge fund or
other major financial firm. A concentration in finance and your actuarial
work would provide you with a fast track up the corporate finance ladder,
even up to the CFO level. And an executive MBA would work well as you
climb the corporate management ladder in the insurance or finance
industriesand your actuarial background would make you one of the
increasingly rare executives who can understand the thinking behind the
numbers.
Some employers will aid you if you want to go to grad school, or you may
opt to head directly for grad school after your undergrad work is complete.
For those seeking higher levels of actuarial work, a few years in the working
world will help shape your abilities and steer you toward specialties you
might not otherwise consider. For those who see actuarial knowledge as a
counterbalance for a more general career as a corporate executive, the
working world may be put off for a year or two while you get your master's
degreebut it would be best if you kept up with your actuarial exams.
Employers will expect to see you further your actuarial knowledge and
abilities through the SOA/CAS testing regime regardless.
Graduate programs
There are, of course, hundreds of MBA programs around the country, some
of which include actuarial concentrations. If you wish to go the MBA route,
there are plenty of resources that can assist you in choosing the right program.
However, if you wish to forgo the MBA and work toward a master's of
science (or even PhD) in actuarial science, the Society of Actuaries has
deemed the following programs as some of the most challenging in the
country. These schools offer research-intensive Master of Science and PhD
programs in actuarial science, business, risk management, statistics, finance
and insurance. According to the SOA, these degree programs cover all of the
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topics on the first four SOA/CAS exams, and also include at least six
semester hours of advanced work. These programs also focus on unique
research, usually in applying actuarial science in different ways to modern
business issues.
Of the top business schools in the United States, only oneThe Wharton
School at the University of Pennsylvaniaoffers actuarial science, according
to U.S.News & World Report's America's Best Grad Schools 2007 survey.
The business schools at Temple University and Georgia State University also
received positive mention in the survey.
United States
Boston University
Florida State University
Georgia State University
Illinois State University
Middle Tennessee State University
Penn State University
Temple University
University of Central Florida, The
University of Connecticut
University of Illinois at Urbana-Champaign
University of Iowa, The
University of Pennsylvania, The Wharton School
University of WisconsinMadison
Canada
Concordia University, Montreal
Laval University, School of Actuarial Science
Universit de Montral
University of Calgary, The
University of Toronto
University of Waterloo
University of Western Ontario, The
Europe
City University, London
ISFA, University of Lyon
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University of Lausanne, Switzerland

There are also master's programs that aren't as research-intensive, but still
lead to a master's in actuarial science or a different master's degree (including
MBA) with an actuarial science concentration. These programs are ideal for
actuaries wishing to continue their actuarial experience while gaining
exposure to other business, finance or economic topics. Since they're also
less research-intensive, in many cases this means less time spent in
completing the program.
United States
Ball State University

Bowling Green State University
Central Connecticut State University
Columbia University
DePaul University
George Mason University
Maryville University of St. Louis
Northern Arizona University
Oregon State University
Queens College, City University of New York
Roosevelt University
St. John's University
University of Michigan
University of Minnesota, The
University of NebraskaLincoln, The
University of TexasAustin, The
Youngstown State University
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Canada
Mexico
Instituto Tecnolgico Autnomo de Mxico
Universidad Anhuac
Internships
Internships are becoming increasingly important to undergraduates as they
prepare for their Bachelor of Science degree. Most major insurers offer paid
summer actuarial internship programs, though the requirements are stringent.
Most students likely will only be able to manage one summer internship,
between junior and senior year, though ambitious sophomores with superior
skills may find themselves qualifying before their junior yearand have the
opportunity for two internship programs.
That will be rare, however, given the requirements most companies have. A
minimum grade point average of 3.2 to 3.4 is mandatory for most programs.
Advanced mathematical courses are a must. And many programs now require
students to have passed the first SOA/CAS examwhich places most
candidates squarely in the junior-senior timeframe. Don't feel bad if you're not
one of the handfuls of sophomores to qualify for these programsfew are.
That said, it's not overstating the matter to say that a summer internship is key
to the start of your actuarial career. Most major insurers offer such programs,
and although competition is intense, you should be able to land one
somewhere. If your school has a solid actuarial science or business
undergraduate program, your career counseling office should be able to assist
you. A visit to the SOA or CAS web pages may also prove fruitful.
Undergraduate internships
Most undergraduate internships at major companies are paid. You'll receive
a good-sized stipend and/or salary, and housing will either be provided
outright or you'll receive an additional stipend. After a day or two of
introductions, you'll be given a project and expected to produce results.
You'll have a mentor, of course, either an associate in your department or a
graduate student. You'll also have opportunities for classroom-like work and
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within the company. In some cases, you'll have a lunch or discussion with Clevel executives. Many internships also offer social events, whether they're
part of the company's overall social schedule or specific to you and your
fellow interns. You'll be given the chance to mingle with your peers and
network with top-flight actuaries.
Needless to say, the many benefits far outweigh any drawbacks. For
undergraduates, again, this is a must. Not only will you walk away with
school credit and a paycheck, but also with contacts who may speak highly of
you when it comes time for the job huntor may even provide a job for you
once you graduate.
Graduate internships
For graduate students, internships can also be useful in gaining experience
and furthering your career. If you've gone straight into graduate school from
undergrad and have yet to work full time in the field, then a graduate-level
internship is just as critical as an undergraduate experience. For grad
students, these are either summer or full-semester internships with a great
deal more emphasis on performance in a job situation than classroom work
and social activities. You'll still need to maintain a high GPA, and in addition,
you'll need to have successfully passed the first two, if not three, SOA/CAS
exams. You'll also need to make a case as to why a particular graduate
internship program dovetails with your current research. In some cases, it
may be up to you, in cooperation with your adviser and your school's career
center, to contact firms directly to set up internship programsespecially if
you're looking for experience outside the traditional insurers. Investment
banks and hedge funds, for instance, could provide outstanding experiences
for a graduate student in actuarial science, though few have a structured
internship program specifically aimed at this career track. Some
communication and lobbying on your part could nonetheless win you a spot
at a fund or firm over the summer.
If you've worked for a company for a few years before deciding to get your
degree, a work-study program may not be ideal, especially if you're trying to
juggle your graduate studies with a part- or full-time job as is. For actuaries,
the real-world work environment is critical to learning, so if you already have
a few years under your belt, you'll be more attractive to potential employers
than someone straight out of academia with two summers of experience.
Some graduate schools may also give you credit for your work experience,
though that varies widely from school to school, and also depends heavily on
the type of work you were doing previously.
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Where to Start
Still, even if you have day-to-day professional experience, an internship with

a different firm, or even in a different industry, could be an eye-opener and
expose you to new ways of doing things and new ideas. While not as careercritical, it certainly remains a powerful option for more experienced grad
students.

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Go| Pharmacia
to www.vault.com
Workplace culture
Compensation
Hours
Diversity
Hiring process

The Big Ones:

Actuarial Exams
CHAPTER 4
Schooling, in some ways, is simply preparatory to the real measure of an
actuarys skills-the exams for associateship and fellowship in the CAS or the
SOA. The exams given and titles bestowed by these two professional
organizations are the standard by which actuaries are measured in the U.S. and
Canada. Being an associate or fellow means a great deal of respect amongst
your peers, and topnotch salaries and job opportunities from employers.
At lower levels, of course, the exams are nothing less than your doorway into
the career. You must pass at least one, and preferably the first two, actuarial
exams before you go to work for a major company after college.
Exam 1/P
Exam 1/P, required by both the SOA and CAS, is a basic test of the candidate's
knowledge of probability mathematics and its use in quantitative analysis of risk.
Its a three-hour, multiple-choice test that nonetheless requires an undergraduatelevel knowledge of probability theories, calculus and, at the very least, a basic
idea of how it might be used in real-world business setting.
Candidates taking Exam 1/P will be expected to know general probability

theories, univariate probability distributions and multivariate probability
distributions, including the bivariate normal.
Most undergraduate courses in probability mathematics will adequately
prepare students for this test. Beginning courses in risk management and
statistics will also help, as will a basic knowledge of finance and/or business.
The SOA calls this Exam P, while the CAS labels it Exam 1.
Sample questions for Exam 1/P

(Answers to all sample questions can be found in the Appendix.)
1) An auto insurance company has 10,000 policyholders.
policyholder is classified as:
Each
(i) young or old;

(ii) male or female; and
(iii) married or single.
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Of these policyholders, 3,000 are young, 4,600 are male and 7,000 are
married. The policyholders can also be classified as 1,320 young males,
3,010 married males and 1,400 young married persons. Finally, 600 of
the policyholders are young married males. How many of the companys
policyholders are young, female and single?
(A) 280
(B) 423
(C) 486
(D) 880
(E) 896
2) A blood test indicates the presence of a particular disease 95 percent of
the time when the disease is actually present. The same test indicates the
presence of the disease 0.5 percent of the time when the disease is not
present, and 1 percent of the population actually has the disease.
Calculate the probability that a person has the disease given that the test
indicates the presence of the disease.
(A) 0.324
(B) 0.657
(C) 0.945
(D) 0.950
(E) 0.995
3) An investment account earns an annual interest rate R that follows a
uniform distribution on the interval (0.04, 0.08). The value of a $10,000
initial investment in this account after one year is given by V=10,000eR.
Determine the cumulative distribution function, F(v), of V for values of v
that satisfy 0<F(v)<1.
v 10,000
(A) 10,000e / -10,408
425
(B) 25e /
v 10,000
(C)
- 0.04
v-10,408
10,833-10,408
(D) 25
v
(E) 25[1n(v/10,000)-0.04]
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4) The monthly profit of Company I can be modeled by a continuous

random variable with density function f. Company II has a monthly profit
that is twice that of Company I. Determine the probability density function
of the monthly profit of Company II.
(A) f (x/2)
(B) f (x/2)
(C) 2 f (x/2)
(D) 2 f (x)
(E) 2 f (2x)
5) A tour operator has a bus that can accommodate 20 tourists. The
operator knows that tourists may not show up, so he sells 21 tickets. The
probability that an individual tourist will not show up is 2 percent,
independent of all other tourists. Each ticket costs $50, and is nonrefundable if a tourist fails to show up. If a tourist shows up and a seat is
not available, the tour operator has to pay $100 (ticket cost + $50 penalty)
to the tourist. What is the expected revenue of the tour operator?
(A) $935
(B) $950
(C) $967
(D) $976
(E) $985
Exam 2/FM
Exam 2/FM (the FM stands for financial mathematics) tests the exam takers
knowledge of the application of mathematics in finance. Both actuarial societies
require this exam, and most employers will want to see it successfully completed
before hiring you. Before taking this test, you should know the fundamental
concepts of financial mathematics and how those concepts are applied in
calculating present and accumulated values for various streams of cash flows as
a basis for future use in areas such as valuation, budgeting, reserves and other
basic corporate accounting functions.
The three main areas tested in this exam are:
Definitions of key terms in financial mathematics. These include inflation,
rates of interest (and variations thereof), term structure of interest rates,
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equivalent measures of interest, future value, current value, net present value,
and stocks, bonds and other investment instruments. You should not only be
able to define the term, but know how it applies to a given situation and
provide the proper equations for it.
Key procedures of financial mathematics. This includes determining
equivalent measures of interest, discounting, accumulating, determining yield
rates, estimating the rate of return on a fund and amortization. These
procedures will be applied to a variety of real-world examples, from
corporate accounting to mutual fund returns.
Definitions of key terms of modern financial analysis. While likely more
intuitive at this stage, youll be required to have a basic grasp of yield curves,
spot rates, forward rates, duration, convexity, immunization and short sales.
Youll be asked to manage basic computations dealing with these concepts.
In other words, while Exam 1/P tested your grasp of advanced mathematics and
probability, this is more of a test of your financial knowledge and your ability to
apply your mathematical skills to the business world. Undergraduate courses in
financial mathematics will be critical to your success on this test. Note that this
test does not require you to apply probability mechanics to real-world business
situations. That will come in a later course and exam.
The CAS calls this Exam 2, while the SOA uses the FM acronym.
Sample questions for Exam 2/FM*
(Answers to all sample questions can be found in the Appendix)

1) John borrows $10,000 for 10 years at an annual effective interest rate of
10 percent. He can repay this loan using the amortization method with
payments of $1,627.45 at the end of each year. Instead, John repays the
$10,000 using a sinking fund that pays an annual effective interest rate of
14 percent. The deposits to the sinking fund are equal to $1,627.45 minus
the interest on the loan and are made at the end of each year for 10 years.
Determine the balance in the sinking fund immediately after repayment of
the loan.
(A) $2,130
(B) $2,180
(C) $2,230
(D) $2,300
(E) $2,370
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2) You are given the following table of interest rates:

Calendar Year
of Original
Investment
Portfolio
Rates (in %)
Investment Year Rates (in %)
y+5
i1
1992
8.25
8.25
8.4
8.5
8.5
8.35
1993
8.5
8.7
8.75
8.9
8.6
1994
9.1
9.1
9.2
8.85
1995
9.1
9.2
9.3
9.4
9.1
1996
9.25
9.35
9.5
9.55
9.6
9.35
1997
9.5
9.5
9.6
9.7
9.7
1998
10
10
9.9
9.8
1999
10
9.8
9.7
2000
9.5
9.5
2001
9.0
i2
i3
i4
i5
A person deposits $1,000 on January 1, 1997. Let the following be the

accumulated value of the $1,000 on January 1, 2000:
P: under the investment year method
Q: under the portfolio yield method
R: where the balance is withdrawn at the end of every year and is
reinvested at the new money rate
Determine the ranking of P, Q, and R.
(A) P>Q>R
(B) P>R>Q
(C) Q>P>R
(D) R >P>Q
(E) R>Q>P
3) A perpetuity-immediate pays $100 per year. Immediately after the
fifth payment, the perpetuity is exchanged for a 25-year annuityimmediate that will pay X at the end of the first year. Each subsequent
annual payment will be 8 percent greater than the preceding payment.
The annual effective rate of interest is 8 percent. Calculate X.
(A) $54
(B) $64
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(C) $74
(D) $84
(E) $94
4) David can receive one of the following two payment streams: (i) $100
at time 0, $200 at time n, and $300 at time 2n (ii) $600 at time 10.
At an annual effective interest rate of i, the present values of the two
streams are equal. Given vn = 0.76, determine i.
(A) 3.5 percent
(B) 4.0 percent
(C) 4.5 percent
(D) 5.0 percent
(E) 5.5 percent
5) Jose and Chris each sell a different stock short for the same price. For
each investor, the margin requirement is 50 percent and interest on the
margin debt is paid at an annual effective rate of 6 percent. Each
investor buys back his stock one year later at a price of $760. Joses stock
paid a dividend of $32 at the end of the year while Chris stock paid no
dividends. During the one-year period, Chris return on the short sale is
i, which is twice the return earned by Jose. Calculate i.
(A) 12 percent
(B) 16 percent
(C) 18 percent
(D) 20 percent
(E) 24 percent
Exam M
Exam M, administered solely by the SOA for SOA associateship, is a four-hour,
multiple-choice exam on basic actuarial models. The exam tests both your
knowledge of the theoretical basis of actuarial models as well as the application
of those models to insurance and other financial risk. This assumes you have the
knowledge of probability mathematics that allowed you to pass Exam 1/P.
Youll need thorough understanding of calculus, probability and interest theory.
Youll have to understand the basic meaning of the term model in an actuarial
context, as well as how and why models are used. Youll also need to know their
limits and how the results of using these models can help to make business
decisions.
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As you enter this test, youll be given a variety of tables to use in answering these
questions. Theyll include values for the standard normal distribution,
illustrative life tables and abridged inventories of discrete and continuous
probability distributions. These tables are commonly used in study materials
obtainable from the SOA, but dont bring your own tables with youtheyll be
taken at the door. If you have your own shortcuts or notes that you commonly
use with these tools, try to have them memorized, and then write them on the
tables provided before you start answering questions.
Exam M will be the first real test of your actuarial science skills. Youll be
expected to use survival and severity models, frequency models, compound
(aggregate) models and life contingencies. Youll also need to apply these
models to a variety of real-life insurance problems.
Sample questions for Exam M

(Answers to all sample questions can be found in the Appendix)
1) A health plan implements an incentive to physicians to control

hospitalization under which the physicians will be paid a bonus B equal to c
times the amount by which total hospital claims are under 400 (0< c < 1). The
effect the incentive plan will have on underlying hospital claims is modeled by
assuming that the new total hospital claims will follow a two-parameter Pareto
distribution with = 2 and = 300. E(B) = 100. Calculate c.
(A) 0.44
(B) 0.48
(C) 0.52
(D) 0.56
(E) 0.60
2) You are given:
(i) Losses follow an exponential distribution with the same mean in all years.
(ii) The loss elimination ratio this year is 70 percent.
(iii) The ordinary deductible for the coming year is 4/3 of the current
deductible.
Compute the loss elimination ratio for the coming year.
(A) 70 percent
(B) 75 percent
(C) 80 percent
(D) 85 percent
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(E) 90 percent
3) Insurance agent Hunt N. Quotum will receive no annual bonus if the
ratio of incurred losses to earned premiums for his book of business is 60
percent or more for the year. If the ratio is less than 60 percent,
Quotums bonus will be a percentage of his earned premium equal to 15
percent of the difference between his ratio and 60 percent. His annual
earned premium is $800,000. Incurred losses are distributed according
to the Pareto distribution, with = $500,000 and = 2. Calculate the
expected value of Quotums bonus.
(A) $13,000
(B) $17,000
(C) $24,000
(D) $29,000
(E) $35,000
4) A fund is established by collecting an amount P from each of 100
independent lives at age 70. The fund will pay the following benefits:
$10, payable at the end of the year of death, for those who die before age
72, or
P, payable at age 72, to those who survive.
You are given: Mortality follows the Illustrative Life Table. (i) i = 0.08
Calculate P, using the equivalence principle.

(A) $2.33
(B) $2.38
(C) $3.02
(D) $3.07
(E) $3.55
5) A dam is proposed for a river that is currently used for salmon
breeding. You have modeled:
(i) For each hour the dam is opened, the number of salmon that will pass
through and reach the breeding grounds has a distribution with mean
100 and variance 900.
(ii) The number of eggs released by each salmon has a distribution with
mean of 5 and variance of 5.
(iii) The number of salmon going through the dam each hour it is open
and the numbers of eggs released by the salmon are independent.
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Using the normal approximation for the aggregate number of eggs released,
determine the least number of whole hours the dam should be left open so
the probability that 10,000 eggs will be released is greater than 95 percent.
(A) 20
(B) 23
(C) 26
(D) 29
(E) 32
Exam 4/C
Exam 4/C, the CAS and SOA names for the exam, respectively, covers the
construction and evaluation of actuarial models. This is a four-hour, multiplechoice examination that tests your ability not to simply use established
actuarial models (as covered in Exam M), but your skill in selecting or even
creating your own models and applying them to real-world situations.
This exam will require you to analyze business data, find or create a suitable
model to solve a problem, and provide some measures of confidence for
decisions based on the modeled data. In other words, this test will have you
put your money where your model is.
The exam will test your abilities in the following areas:

Construction of empirical models using the Kaplan-Meier estimator, the
Nelson-Aalen estimator and kernel density estimators.
Construction and selection of parametric models, including the use of Bayesian
procedures, and testing of those parametric models using the KolmogorovSmirnoff test, the Anderson-Darling test and the chi-square goodness-of-fit test.
Full credibility assessments of selected models and data derived from them.
Your understanding of interpolation and smoothing of data.
Simulations and their roles in selection and testing of models and
applications in the context of actuarial science.
Like Exam M, the examination staff will provide you with the necessary
tables to take the test, including standard normal distribution, chi-square
distribution, and abridged inventories of discrete and continuous probability
distributions. Again, if there are shortcuts or notes you tend to use, memorize
them and write them down on the tables provided, since you wont be able to
bring your own tables to the exam.

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Sample questions for Exam 4/C

(Answers to all sample questions can be found in the Appendix.)
1) You study five lives to estimate the time from the onset of a disease to
death. The times to death are: 2 3 3 3 7
Using a triangular kernel with bandwidth 2, estimate the density
function at 2.5.
(A) 8/40
(B) 12/40
(C) 14/40
(D) 16/40
(E) 17/40
2) The distribution of accidents for 84 randomly selected policies is as
follows:
Number of Accidents
Number of Policies
32
26
12
Total
84
Which of the following models best represents these data?

(A) Negative Binomial
(B) Discrete Uniform
(C) Poisson
(D) Binomial
(E) Either Poisson or Binomial
3) You are given the following about 100 insurance policies in a study of
time to policy surrender:
(i) The study was designed in such a way that for every policy that was
surrendered, a new policy was added, meaning that the risk set, rj, is
always equal to 100.
(ii) Policies are surrendered only at the end of a policy year.
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(iii) The number of policies surrendered at the end of each policy year
was observed to be:
1 at the end of the first policy year
2 at the end of the second policy year
3 at the end of the third policy year
n at the end of the nth policy year
(iv) The Nelson-Aalen empirical estimate of the cumulative distribution
function at time n, F(n), is 0.542.
What is the value of n?
(A) 8
(B) 9
(C) 10
(D) 11
(E) 12
4) You observe the following five ground-up claims from a data set that
is truncated from below at 100: 125 150 165 175 250
You fit a ground-up exponential distribution using maximum likelihood
estimation.
Determine the mean of the fitted distribution.
(A) 73
(B) 100
(C) 125
(D) 156
(E) 173
5) A survival study gave (1.63, 2.55) as the 95 percent linear confidence
interval for the cumulative hazard function H(t0). Calculate the 95
percent log-transformed confidence interval for H(t0).
(A) (0.49, 0.94)
(B) (0.84, 3.34)
(C) (1.58, 2.60)
(D) (1.68, 2.50)
(E) (1.68, 2.60)

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Exam for Course 6 (Finance and

Investments)
This SOA-only course is designed to test actuaries' knowledge of a variety of
investment vehicles and how actuarial science may be applied to the field.
The test is a five-hour multiple-choice and essay exam. Those taking this
course should, in addition to completing SOA's Course 6 offerings, have a
good working knowledge of capital markets, investments, applications of
derivatives and the principles of portfolio management.
The objectives of this exam are deceptively simple: to make sure you know
how risk and reward interact in the capital markets. Yet this isn't Jim
Cramer's showyou have to back this up with actuarial science while
explaining the risks investors face.
Before you take this test, here's what you should know:
Various investments, as well as their risks and returns. This includes not
only stocks, bonds, real estate and guaranteed investment contracts (GICs),
but also the risk and reward characteristics of the various marketplaces.
The basic fundamentals of modern portfolio theory. This includes various
pricing models, including the Markowitz Portfolio Selection model, and the
three versions of the efficient market hypothesis.
Options. The options trade is where actuaries can make a real impact. Be
prepared to discuss puts and calls, swaps, forwards, interest rate caps and
no-arbitrage pricing models. Also be prepared to determine the value of
cash flow streams with embedded options.
The application of interest rate risk management and effective duration. Be
prepared to discuss immunization in this context, as well as compute an
effective duration measure using option-adjusted spread analysis.
Principles of asset liability management, and how they can be applied to
portfolio construction and management for institutional investors. Be
prepared for real-world applications.
As you can see, you need to really know the workings of our capital markets. If
you've not really touched on this material beforesay, because you've spent the
vast majority of your time in insurancemake sure you take the course from the
SOA and read all of the suggested materials. If there's training or hands-on
experience you can get from your company, take it.
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Of course, this isn't a necessary course for associateship or fellowship in the SOA,
but it proves that you've expanded your skill set beyond "traditional" actuarial
applications and into the financial markets. As traditional insurance companies
diversify both their offerings and their business mix, this exam becomes more
critical for the extension of your career into the upper echelons of the field.

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n l e y | OLD
U B S | EMBERSHIP
A m e r AND
i c a n GET
E x p ACCESS
r e s s | STO
a l l ALL
i e MOF
a e AULT
| WeS
Young
|
Legg
Mason
|
JPMorgan
Chase
|
HSBC
|
Moody's
|
Young
|
Legg
Mason
|
JPMorgan
Chase
|
HSBC
|
Moody's
|
Young
|
Legg
Mason
|
JPMorgan
Chase
|
HSBC
|
Moody's
|
Young
|
Legg
Mason
|
JPMorgan
Chase
|
HSBC
|
Moody's
|
GO FOR THE GOLD!

G V
'

Firm culture
Business outlook

profiles
Central


WSJs top choice)
ACTUA
CAREE
GUIDE
ON THE JOB
Chapter 6: Career Decisions
Chapter 7: Qualifications for Lab Research Careers

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Career Decisions
CHAPTER 6
Your career as an actuary can take many forms, as previously discussed. The
role of actuaries has grown well beyond insurance and pension industries.
Actuaries are a growing, dynamic force in the business world. Thats not to
say that the life of a working actuary is glamorous. Few actuaries are
managing Trump-style deals, leading companies or saving corporations from
financial ruin. Of course, few businesspeople in general do that anyway.
Being an actuary means, for the most part, a 9-to-5 office job. As your
expertise and responsibilities grow, that may change somewhat, just as any
job advancement would alter ones lifestyle. But in the end, youll go in, have
meetings, define goals, crunch numbers, write reports and implement your
work, then come home. Maybe youll do some catch-up at the end of the day
with e-mail or some work-related reading.
Office drone, you say? Hardly. Youre going to be dealing with very
important issues that not only affect the company you work for, but the
thousands, even millions, of customers of that company and its competitors.
Your hard work can save billions of dollars, affect peoples jobs, and help
others prepare for and mitigate the worst risks that can befall a company.
Not bad for a mathematician, right? said one pension actuary whos
currently working to make sure that a major corporations now-closed
pension fund can still pay off its surviving beneficiaries. Ive got 15,000 or
so people who will need this fund, maybe for the next 30 years. Without this
fund, they have nothing. Its nice to feel like youre helping people.
And dont pooh-pooh the 9-to-5 thing, either. Youll work hard, but youll
also have the opportunity to have a lifesomething quite rare in the business
world. Furthermore, your expertise, training and certifications all mean that
youll earn a very comfortable salary. Youll start in the $50,000 annual
salary range, and make 10 times that in a surprisingly short amount of time.
Starting Out
Congratulations! Youre out of school and have landed your first actuarial
job. Youre making $50,000, maybe a little more, and youve probably got
some money to help move too, maybe even a signing bonus. Not bad for
someone in their early 20s! Now its time to get to work.

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The Hiring Process
In the early part of your career, you can expect to work hard. Yes, we just
said actuarial work is a 9-to-5 job, and it is once youre established. But
right now, youve got to prove yourself to your new employer and study hard
for your next SOA or CAS exam. Ive been an actuary for six years, and Im
still studying, said one consulting actuary. It never ends. Your bosses will
want you to keep going, keep studying, keep taking the tests.
Testing
Thankfully, your employer will likely help you with the testing you need.
Large corporations, especially insurers, will often have their own study
courses. Indeed, the biggest insurers around, like MetLife and Aetna, will
often have college graduates spending 50 percent or more of their time in the
classroom, getting ready for the next exam.
Youll generally be expected to tackle a CAS/SOA exam every year to two
years, depending on your ratio of work to study time. Smaller companies will
have you doing real actuarial work and learning on the job, so youll not be
testing as much. Others, again mostly larger companies, will want you to
have six to seven exams under your belt before youll be free of the classroom
and ready for more responsibility.
Early to rise
Either way, you can expect your salary to climb as each year passes and, more
importantly, with each exam you pass. At most companies, passing another
exam not only means a boost in your base pay, but likely a bonus on top of
that, and more responsibility in your day-to-day job.
Hitting the Wall

Not everybody is an utter genius at math. In fact, the majority of college
students who enter the actuarial field will not become associates of the SOA or
CAS. They will, as many actuaries often say, hit the wall on one of their
exams.
The truth about the exams

As you may have seen in the previous section, the SOA/CAS exams are hard.
The first one or two are a fit challenge for an undergraduate mathematics
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The Hiring Process
major. The third and fourth require not only math, but a strong business sense
as well. By the time youre on your sixth or seventh, youve either been
around actuarial science for years or have an advanced degree in
mathematics, business and/or actuarial science.
And at some point, you simply just might not get it any longer. The first two
I passed easily, the third took me two tries, the fourth took three tries, one
insurance industry actuary says. The fifth three times so far. And at this
point, Im on my own for a fourth try. Indeed, companies will teach and
train and prep you only so longthree times seems to be standard. If for all
your hard work and study, you simply cant pass a given exam after three
times, then the company likely wont sponsor you for a fourth.
You can certainly try other exams, though after the fourth they tend to build
upon one another and increase in difficulty. You can also take the test on your
own. Going to graduate school for advanced actuarial science or mathematics
work is another option, with hopes of gaining enough experience and
knowledge for a better shot at a test.
When to say when
Or it may just be that youve hit the wall. As the difficulty of the actuarial
exams increases, it becomes something akin to art rather than science, and youll
need to creatively apply the most cutting-edge theoretical mathematics to the
problems posed. That kind of work isnt for everyone, and it may not be for you.
That, of course, then begs the question, what happens to your career once you
hit the wall? A flip answer would be that you go into management. But like
many old business-world clichs, thats sometimes not far from the mark.
You may continue to gather experience at the level youve achieved, and
ultimately manage others doing what you do now. So if youve passed five
exams but not the sixth, and youre currently working on modeling potential
prescription usage patterns for a major health insurer, youll probably keep
doing that, and may ultimately manage your business unit.
To further that goal, you might decide to get your MBA or try other
management-track options. Perhaps youll find a position at a different firm
that has more management potential. Your own firm may encourage you to
take that tack in your career as well. Im glad I hit the wall on the tests.
They were awful. I hated them, says one pension industry actuary whos
now in a management position. Im managing the people who used to do
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their work now, and its great. I may not do it forever, but the management
experience helps me with whatever I want to do next.
Sadly, some firms dont take hitting the wall as kindly. Few working
actuaries can name firms who have let people go, but in many larger
companies, hitting the wall in your testing regime is the effective end of your
career advancement. Of course, a cushy office job that pays $150,000 or so
is hardly a stalled career for many Americans. But actuaries are generally
more ambitious than that. Should this happen to you, a change of scenery will
likely do you and your career wonders.
Career Transitions
That change of scenery can take many forms. Many smaller companies
would love to get their hands on someone trained at a MetLife or
UnitedHealth. Their work isnt as esoteric as the top corporations can be.
Some actuaries who left the behemoth firms to work for smaller companies
say theyve found increased job satisfaction. Theyre more in control of their
work and careers, and they often rise through the ranks faster. They may not
be making as much as a New York City insurance actuary, but theres
something to be said for a fish finding a smaller pond to swim in.
Moving within the business world

You may also want to apply your actuarial skills to other areas of business. If
you started in the insurance field, you may find new challenges in a different
type of insurance. Currently, that could prove more difficult than it sounds.
Most major insurers, of any stripe, have strong collegiate programs that provide
more than enough troops to fill their ranks each year. Even as new actuaries in
each class drop out due to poor performance or to go elsewhere, others quickly
take their place. And the competition for higher-paying jobs with more
responsibility is already intense inside the company, even if the job is posted to
the outside world.
Other options
Many consulting firms also hire straight from college, but theres a little more
flexibility there. The firm may bring in new clients that require a surge in
workers, or a client may have specific needs that arent yet covered
adequately by the firms in-house expertise.
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The government, federal or state, often does not have the training programs
necessary to bring actuaries along like corporate employers do. The pay,
while good, is generally less than that of the corporate world, but its a very
easy transition and the pressure to advance in SOA/CAS testing is less.
Theres also more opportunity to advance in the various financially-centered
departments of government as well.
Broader financial services companies are quickly coming to appreciate what
actuaries can do with risk mitigation. Whether an asset management firm is
developing a new investment product, a hedge fund or private equity firm is
pondering a major investment, or an investment bank is crunching the
numbers on alleged synergies between two would-be merger partners, the
actuary can have a front-and-center role. Few of these companies have fullblown hiring programs like the insurance and pension industries do, and thus
are great alternatives for actuaries seeking career transitions.
Likewise, the rest of corporate America will always have use for actuaries.
The roles certainly may vary from company to company. One company may
have you developing risk profiles and mitigation plans for store expansions
throughout the Northeast, while another may simply ask you to manage the
companys life and health insurance programs. Naturally, its the former
positions that offer the best opportunities for growth and challenging work.
Again, most of these companies dont hire actuaries out of college, so a move
here is far more likely for mid-career actuaries.
Making It to the Top

The vast majority of actuaries dont make it to the top ranks of the business
world. Of course, most MBAs dont either. Lets say there are roughly 8,000
publicly traded and private companies in the United States worth mentioning
the kind of companies that have an outside chance of being mentioned in The
Wall Street Journal or Forbes. That means that less than three-tenths of 1
percent of the U.S. population is running a big-name public company. So dont
feel bad if your actuarial career doesnt lead to the corner office.
That said, actuaries are becoming more involved in top decision-making efforts
at major corporations. As you might expect, actuaries have the fastest rise to the
top in insurance companies, and many C-level executives at life, health and
property insurance companies were once computing life tables just like you.
Actuaries are also finding careers in the financial divisions of major
corporations. As risk awareness, management and mitigation become more of a
priority for companies squeezing every cent of possible shareholder value,
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actuaries can play a leadership role as comptrollers and even chief financial
officers.
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Lifestyle
CHAPTER 7
The most recent edition of the Jobs Rated Almanacwhich rates jobs by
salary, intellectual stimulation, opportunity for advancement, hours and jobrelated stresshad actuary in second place behind biologist. In fact, the
vast majority of job surveys also have actuarial careers at or near the top.
As actuaries well know, there are a lot of factors to consider when building a
career. Some actuaries are very business-oriented and can thrive under the
pressure cooker of Wall Street. Others may be more introverted and prefer to
simply let their work speak for itself. Either way, actuarial science provides
plenty of options and a great deal of choice in balancing lifestyles.
Actuarial careers are also generally quite secure. Demand for actuaries
remains strong and, despite the falloff in pension work, is only expected to
grow in the coming years. The job requires a deep knowledge of finance and
mathematics, and the certification process is strenuous. If you can manage
that, you wont have many problems finding and keeping a job.
Salary
One of the biggest attractions is salaryfew career choices for mathematics

majors will yield a larger pay than actuarial work. According to the Society
of Actuaries, an associate-level actuary earns more than an average MBA
graduate.
Salaries do vary widely from industry to industry, or even company to
company. The SOA estimates most Fellows earn between $150,000 and
$250,000 annually. Yet a Fellow working for a major financial services firm
could earn $500,000 or more each year in base pay plus bonus, while the
same Fellow working for a public pension fund or the government can expect
$125,000. Granted, the Fellow in financial services will have much longer
hours and a lot more job-related stress but its there for the taking.
Thats the beauty of a career in the actuarial fieldthe ability to balance life
and work, and achieve a level of both that suits you. For those who are
ambitious and can handle stress, the rewards are very high. And though the
rewards arent as high for those who prefer a less stressful workplace, theyre
still well above average compared to those of most careers.

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Insurance
Actuaries working for major insurers can expect to start in the $60,000 range.
In 10 years, with the completion of a full slate of actuarial exams and
Fellowship, that can top $300,000 or more. By the time you retire, that can
reach $500,000 or more a year, especially if you take a management or
executive track. Those few who can make it to the upper echelons of the
corporate world can pull in multimillion-dollar salaries, plus sizeable
bonuses.
Smaller insurers, of course, wont pay as much. Even so, $175,000 after a
decade of hard work and completion of all exams isnt unheard of. You may
have to move on to another firm to reach the top, but those who stay on can
expect to retire with a salary of $350,000 or more.
Government
Government actuaries and those employed by public pension funds tend to
make less and are governed by civil service law. Most federal government
actuaries can expect to start in the $50,000 to $60,000 range. Those with
some experience can quickly top $100,000 or more per year. In 10 to 15
years, its closer to $175,000 a year. The government isnt as obsessed with
SOA/CAS exam completion, eitheryou wont have to climb all the way up
to Fellowship to land a very comfortable job, and the work can be both broad
and challenging.
Consulting
Consulting firms vary widely in salaries. A small firm can experience feastor-famine times that tend to keep salaries small and bonuses always in flux
from small to amazing. Larger firms, such as Deloitte & Touche or Buck
Consultants, have steady salaries, regular bonuses and generally pay more. A
top consulting firm can have actuaries earning more than $100,000 in three or
four years, and rival the topmost insurance companies through your career.
Financial Services
Actuaries in the broader financial services industry tend to work the most
hours and have the most stress, but earn the best salaries. A Wall Street
investment bank or hedge fund will start most entry-level people at $80,000
or better, including base salary and annual bonuses. That can rise sharply
over time, depending on job performance and the companys fortunes. In 10
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to 15 years, salary/bonus combinations of $750,000 can be achieved, with the

bulk of that coming in a year-end bonus. Most actuaries involved with major
financial services companies can retire as millionaires, and likely retire early
as well. However, youre also buying into the stress and performance-based
culture of Wall Streetits not for the faint of heart.
Pension funds and endowments, on the other hand, dont pay nearly as much,
but the hours and stresses are far less. Expect to earn $60,000 or so to start,
with salaries topping out at about $250,000 to $300,000 in 15 to 20 years.
Corporate America
Finally, actuaries working for corporate America can see the widest swing in
their potential earning power. Actuaries starting out in helping to manage a
companys insurance policies can earn just $40,000 a year. Those in growing
industries who are responsible for mitigating business risk across an entire
business can earn salaries rivaling those on Wall Street.
A Word on Diversity
The actuarial field isnt very diverse, but the SOA and CAS, along with most
major employers, have worked hard to change things. At the collegiate level, the
two actuarial societies offer undergraduate and graduate-level scholarships for
qualified minority studentscurrently limited to African-American, Native
American and Hispanic students. The amount of the scholarship depends on
merit and financial need, though students who have passed an actuarial exam can
qualify for an additional $500. More details on this program can be found online
at: www.beanactuary.org/minority/scholarship.cfm.
The societies also offer exam fee reimbursements for minority students
attempting the first actuarial test, Exam P/1. If the student passes the exam
in the first two tries, the societies will reimburse the $175 exam fee, for both
attempts if need be. If the student fails the first two times, theres no
reimbursement.
Mercer Human Resource Consulting also offers minority scholarships to
would-be actuaries, along with minority students majoring in mathematics,
economics, business, finance or liberal arts, amounting to up to $5,000 per
year per student. The recipient must accept a summer internship program
with Mercer and be involved with campus outreach on behalf of the company.
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position with Mercer after graduation. More details may be found at:
www.mercerhr.com/diversityscholarship.
The International Association of Black Actuaries also offers minority
scholarships to African-American students. Details can be found at:
www.blackactuaries.org/membership/ActuarialScholarshipsInfo/. The IABA
also conducts outreach to African-American schools and colleges, and works to
increase the visibility of African-American actuaries through conferences,
networking and policy papers.
In general, minority scholarship recipients can expect extensive contacts with
other minorities in the field and will have the opportunity to find and cultivate
potential mentors. As you progress further in your career, you may have the
opportunity to join the IABA and/or work with the SOA/CAS Joint
Committee on Diversity to bring additional focus to diversifying the field.
Other Pros and Cons

Talk to actuaries about their jobs, and youll find them to be very frank about
what they like and dislike about their careers. For most, the likes well
outweigh the dislikesanother sign of the stability and opportunities
available for would-be actuaries. The dislikes, however, are very real, and
may apply to you.
Pros
A great salary. Again, actuaries quickly rise to a level well beyond a
living wage. They can generally afford to live wherever they want
and fully support their families without any sort of real financial stress.
A good lifestyle. As previously mentioned, actuaries can essentially set
up the lifestyle theyd like, balancing reward and stress to their taste.
The hours are generally stable, and the benefits are good. Few ever face
layoffs or other unexpected career interruptions.
An intellectual challenge. If you already have a taste for mathematical
analysis, the job is rarely boring. Whether youre managing a pension
fund or building investment vehicles for a financial services firm, there
will always be challenges. And as you advance in skill, your employer
will eagerly put you to work on new things.
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Security. Actuaries are in demand. That means not only are most jobs
fairly secure, youll also be able to work with your employer on flextime, study time, vacations and other related matters.
Cons
Test pressure. Many employers really want to see their new hires become
full Fellows in about 10 years or so. Even with company-sponsored classes
and time off for studying, the first several years of your actuarial career can
seem like youre juggling advanced graduate work with a full-time job.
And you will be. While its not absolutely imperative for you to gain
Fellowship, your career will be effectively curtailed otherwise. Again,
being curtailed at a $200,000 base salary may not seem so bad to many
people. But it can be tough to see others advance. Theres just a ton of
pressure to get those tests done and out of the way, and nobody wants to hit
the wall and stall out, says one insurance actuary in her 20s. Ive already
seen some of the people I started with now stuck in a really boring job
because they couldnt get through the fourth exam. It creates a ton of
pressure. Once youre done and get Fellowship, it becomes a lot easier.
Specialization. You may also find yourself having to adopt a specialty in

your career far sooner than youd like. If you have an aptitude for
understanding the effects of pharmaceuticals, you could be stuck doing it
for years before youre able to branch out againusually after youve
earned Fellowship. Though for some thats not a bad thing, it can be
frustrating for other actuaries who developed accidental specialties simply
by having done a good job on a single project their first year in.
Internal competition. At some of the larger firms, there can be intense
competition between actuaries in the same class. As each new batch of
graduates comes in, theres also more pressure to outperform them as well.
This is somewhat tied to test performance, but you can often find it even
after youve earned Fellowship. Most companies are a pyramid, and there
are only so many positions at the top. For less business-inclined actuaries,
this can sometimes come as a shock.

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(Time to New Job)
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The Nitty-Gritty: Types

of Actuarial Careers
CHAPTER 8
Different actuaries do different things. Depending on industry, actuaries can
do anything from insurance and pension policies, to corporate mergers and
military risk management. In this chapter, we will discuss the roles of
actuaries in different industries, including the insurance industry, pension
industry, financial services, consulting, corporate America and government.
We will also discuss the day-to-day activities of actuaries in different careers.
Actuaries in the Insurance Industry
Actuarial science and the insurance industry owe their existence to each
other, and the industry remains the top employer of actuaries in the business
world. Insurance provides some of the best training and best salaries for
actuaries. Its a demanding business, but can be rewarding in a variety of
ways.
The life and health insurance industries are the foremost employers of
actuaries. On the surface, the demands are very simplemake sure
policyholders are paying enough to cover the payouts necessary every day.
Naturally, its far more complicated than that. Changing demographics and a
steady stream of medical breakthroughs require insurance actuaries to
question their assumptions on an almost daily basis. They just recently
published a piece on hormone therapy, saying that women who stopped
taking it had a sharply decreased breast cancer risk, says a top-level actuary
at a major health insurance group. So we have to go in and change the
models in so many different ways. Our breast cancer models, our menopausal
models, our drug cost models, everything. That one finding had us adjusting
nearly everything we do.
As the baby boomer generation continues to age, there will be a continued
call for actuaries in the insurance industry to help develop strong policies and
insurance funds. This generation, in particular, is active like no other.
Theyre living longer, for example, but theyre also out playing sports,
exploring, traveling, etc., and their potential for other kinds of injuries,
diseases and mishaps is higher. Actuaries will remain busy in these fields for
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The property insurance industry is also hunkering down for change. The
onslaught of Hurricanes Katrina and Rita were a wake-up call for most
insurers, and the industry is now carefully modeling a much broader array of
potential disasters. Katrina was the big what-if scenario come to life, says
an actuary working on post-Katrina disaster models. It made us all look at
what we were doing. It wasnt enough.
Immense change, of course, brings opportunity. Insurance actuaries are being
challenged to think more broadly, to mitigate a wider variety of risk and to
help maximize company profits in a time of great uncertainty. Theres
perhaps more pressure in the insurance industry than there was just 20 years
ago but with it comes greater rewards. Not only are good actuaries in
higher demand, but the work will help save money, property and lives.
A Day in the Life of a Newly Hired Insurance

Actuary
8:30 a.m.: I usually roll in the door right about now. We dont have to be there
until 9 a.m., but I need the time to check my e-mail, do a quick check of my work
from the night before and just get my head on straight before it all starts.
9 a.m.: My fellow classmates and I spend the morning in training classes.
Ive passed two of my SOA exams and Im aiming for the third. This is pretty
critical, too. Its the one that really dives deep into the insurance industry
models that everybody uses. Classes last all morning. We look at real-life
examples of models being used in the company right now, and some
interesting things that the actuaries here have come across in the work. A new
drug or surgical breakthrough can really have big implications for our
modeling. Its a lot about learning the science behind those breakthroughs,
for one, then estimating the section of our policy population thatll be
affected, and then figuring out how theyll be affected.
12:00 p.m.: Most of the time, were on our own for lunch. Every couple of
weeks, theyll bring in the head of this or that department, or even more
senior people, to talk about the firms direction and challenges. Most of the
time it doesnt really apply to what were doing, but its kind of nice to feel
that youre part of something bigger.
1:00 p.m.: We spend the next few hours doing exercises related to the test and
to the companys work. Sometimes its just sample questions, but other times
theyll bring in problems that the companys more senior folks are working
on, and well hash it out together and see what we come up with. Twice a
week, we work on longer-term assignments that will actually help the
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companys work, like updating life-table data or whatever. At least that

makes you feel like youre contributing.
4:00 p.m.: We come back together as a class and discuss our afternoons
work. Every few days, were given reading assignments and homework. Yes,
homework. When they first give you that assignment, youre like, Didnt I
leave this behind in college? But actuaries always have to keep studying.
And my firm wants everyone to get up to speed and get their exams out of the
way.
6:00 p.m.: Done for the day. Except, of course, if were given homework, in
which case I head home, scarf down dinner and hit the books for a few hours.
Actuaries in the Pension Industry

In a generation, there may be no pension industry to speak of. The number
of companies offering pensions to employees has declined sharply in the past
25 years. Today, more than 34 million Americans either rely on pensions for
income or are contributing to pension plans for their future retirement. It
seems like a lot, but thats just 11.3 percent of the total U.S. population.
Still, thats 34 million people relying on actuaries to help maintain a secure

retirement. And much like the insurance industry, the changing health
patterns of older Americans are making it a very challenging time to manage
pensions. As more people shift to 401(k) plans, some actuaries are also
facing the additional challenge of winding down an existing pension fund that
is no longer seeing active employee contributions. For the actuary, that
means managing investments and ensuring payouts for retirees until the very
last one passes away.
Many consulting firms have taken over pension management work for major
corporations as plans are wrapped up and downsizing and outsourcing
continues for almost all non-core business activities. For actuaries, thats an
even better situation, since pension actuaries can transition to other
consulting work in the company. Theres still at least another generations
worth of work for actuaries in the pension field until plans go away entirely.
It may seem like a relic of corporate America, but would-be actuaries
shouldnt shy away from pension work.

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A Day in the Life of a Consulting Pension

Actuary
8:00 a.m.: Im out the door with my son. My wife goes into work before me,
so I get my son ready and drop him off at day care before I head into the city.
9:30 a.m.: Im at my desk, ready to start the day. Im picking up a few things
I was working on the night before. We help manage and certify the health of
corporate pension plans. Its the same thing that a lot of pension plan
actuaries do when theyre in house, but even large companies would rather
farm the work out than have to bring people on staff to do it. Mostly what I
do is sign off on the work of others whove done the heavy lifting to make
sure these plans can meet their objectives. Once I sign off on a given plan, it
goes to the regulators.
10:30 a.m.: Im on the phone with a client. I talk to clients at least once a
day, sometimes more. We consult for any number companiesbig ones, the
ones that still actually have pension funds. Theres always some kind of new
wrinkle to deal with, whether its a surge of coming retirees or transitions to
a new insurance plan. Sometimes theyre making adjustments to the way
they invest, so I have to talk with them to make sure theyre on track to meet
their goals and needs.
12:00 p.m.: Lunch. Ill head down with some colleagues to grab a bite.
Sometimes its a working lunch when were trying to nail down something on
deadline for a client.
1:00 p.m.: Ill be meeting with the team responsible for a given client or
clients to make sure things are going well. Well talk about any changes they
want to do within their plan. In some cases, its more about a timetable
theyve put in place to wrap up their plan and obligations to close it down.
Theres a lot more of that these days.
2:30 p.m.: Back on the phone again, but this time with a college student
looking to come to the firm to work for the summer. Im also in charge of our
recruitment program for our summer interns. We select 10 interns each year
to join us for the summer. Ideally, all 10 will come work for us after they
graduate. Most of the time its six or seven out of 10, but we aim for all 10.
We dont do a lot of outside hiring. We prefer to grow from within each year
with the interns.
4:00 p.m.: Im off back across the river to pick up my son. My bosses give
me really flexible hours, which is great. Im able to get him by 5:30 or so and
get home for dinner.
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9:00 p.m.: After dinner and family time or whatever, Im back working.
Thats the trade-off with my bosses for the shorter day in the office. I usually
put in a few hours, mostly reviewing the work my team has done that day.
11:00 p.m.: Around this time my brain stops working and Im off to bed.
Actuaries in the Financial Services

Industry
This is where the growth, money and stress can be found. Actuaries working
for the broader financial services industry are put to use in the broadest
variety of ways imaginable, and the stakes are often valued in the billions of
dollars. The stresses are atypical of the actuarial field as a whole, but the
compensation is, too.
This work is an extension of the insurance and pension management actuaries
have done for generations. In insurance and pensions, actuaries are often
called upon to measure the risks and rewards of investments that pension
funds use to ensure they can pay benefits to their clients. The same principle
applies to this, except theyre being called upon to provide the best riskreward ratio possible for maximum profits.
Of course, banks and credit issuers have used actuarial models for years. The
credit scores used to measure individual creditworthiness were developed in
part through the hard work of actuaries. Everyone knows that a person in
debt will have a harder time managing more debt. But actuaries can look at
that debt and determine formulas for just how much debt a person can
manage, what kind of debt is appropriate and what interest rate is appropriate
for the bank to charge in order to mitigate the credit risk.
Actuaries are also being used by proprietary trading desks, mutual funds and
hedge funds to study potential trades for unforeseen risks and to help mitigate
the risks involved through hedging strategies. Whether the investment
involves stocks, bonds, currencies, commodities, even options and futures
strategies, theres always risk, and more and more, companies believe
actuaries can help minimize those risks. Investing is nearly always a gamble,
of course, but its wise for a gambler to know the odds and play the game to
the best of his or her ability. The actuaries in the financial services industries
do just that.
Actuaries are also called upon to help construct investment vehicles for sale
to institutional and public buyers. A major broker wont build a new hedging
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product for its high-net-worth clients without having an actuary on hand to

crunch the numbers and determine the risk profiles.
Even investment banks use actuaries to help determine the risks and benefits
of merger and acquisition deals. Though this is still rare, a handful of
actuaries have been called upon to help crunch numbers and come up with
risk-reward situations for a variety of factors in a given merger.
More and more investor assets are being put to work in the global
marketplace every day, and everyone in the game wants to make sure each
trade is worth the risk. Actuaries will become an increasingly important part
of the investment and financial industries for years to come.
A Day in the Life of a Financial Services Actuary
7:30 a.m.: I work for a major hedge fund, so Im in fairly early, since most
of the people I need to work with are busy trading and monitoring the market
between 9:30 and 4. I have a team of three other people, and together we run
risk profiles and mitigations for every investment imaginable, from equity
options to commodities and currencies. Talk about variablestheres any
number of ways you could play a given trade. We have to find the best one.
Usually the day starts slow, but once a week we have a breakfast strategy
meeting with the various trading heads to figure out possible moves. Thats
when I can chime in and help. Its still pretty new to the guys to have
actuaries on board, but were getting accepted pretty quickly. I ran a
comparison once based on our recommended move versus the move a 20year veteran trader ran. We wouldve improved the trade by 400 basis points.
They listen more now.
9:00 a.m.: By this time, whether Im in a meeting or just looking at the emails, I have a good sense of what the trades might be like today. Hedge
funds arent day traders by any stretch, though there are plenty of one-off
trades during the day that crop up for individual holdings. For those, Im not
needed. But now and then, someone will be thinking of a particularly
interesting move, and well try to quickly model that out.
9:30 a.m.: Trading begins and its off to the races. We dont do a lot of moves
right awaywe like to pick our spots. For me, it doesnt matter much what
the rest of the firms doing. My team and I are already modeling out a variety
of potential trades, and we add one or two more to the mix every day. We
figure out how much to put into one trade, what the best hedge is, and how
much to put into the hedge to mitigate the risk while maximizing the profit.
A really simple example would be reacting to a dip in oil prices. We believe
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oil isnt done, so if we see a dip, well buy crude futures. But well also short
ExxonMobil and get a short-term win, and a hedge that way, too. Of course,
well have already looked at a million other factors, from the winter weather
forecasts to OPEC production, before we recommend anything.
11:00 a.m.: One of the traders is ready to pull the trigger on a trade. We run
the latest models and get them over to the desk ASAP. She didnt go by the
letter of the modeling, but at least went with the spirit of the recommendation.
She bought a little less of the hedgea gut move, she told me. Well see
how it plays out over the next few weeks.
12:30 p.m.: Lunch is nearly always brought to everybody at the firmcant
afford the time away. Since they want someone from the team around at all
times, we eat at our desks, too.
2:00 p.m.: Ill often do a quick meeting with a trader on the floor when its
slow. This is a little late, but the markets behaving and he has the time. We
go over the model for a pretty complex currency swap hes contemplating.
The hedges dont quite work as well as he or I initially thought, and thus wed
be putting a bit more of our assets at risk than we initially thought. We come
up with a few more options, which I head back to research.
4:00 p.m.: Today was an uneventful day for equities, bonds, really pretty
much everything. That works for me. There are definitely days where the
market just goes in a random direction, and we have to redo a bunch of work
to take that into account.
4:30 p.m.: A quick meeting with most of the sections to go over the days
trades and their results, and to track investments in general. We talk about
when a good time might be to wind down an investment, pick up more, that
sort of thing. That gives me another set of numbers for the team to crunch.
6:00 p.m.: This is about when I usually leave, unless theres some really
pressing work ahead. When Amaranth lost all that money betting wrong on
the natural gas bubble last year, I spent a week of sleepless nights figuring out
our exposure, past and present, to determine our current risk. Turned out to
be not much, especially when it came to light that the trader was simply
betting wrong and not telling anyone. Thankfully, were better in our internal
controls than they were.

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Consulting Actuaries
Consulting firms are a fast-growing employer for actuaries. Whether solely
dedicated to actuarial work or broader financial consultants, these firms are
finding more roles for actuaries as corporate America outsources just about
everything except for core operations.
Thus, as noted previously, many companies have turned to consultants to help
run benefits programs and pensions. Thats the bread-and-butter work for
most consulting firms focused on actuarial work, and its similar to the
benefits and pension management work you can expect working in-house at
a pension fund, an insurance company or a nonfinancial corporation.
Yet major consultancies, such as PricewaterhouseCoopers and Deloitte &

Touche, are finding uses for actuaries elsewhere. These consultants often
work as corporate auditors, and must sign off on a companys books before it
files results with the Securities and Exchange Commission. Of course,
actuaries play a large role in auditing insurance companies, but they can also
help in examining the finances of almost any company, especially if the
companys business involves finance and investment. Consultants are also
called upon to help companies study potential changes to insurers and benefit
programs. They may be asked to analyze a companys investment mix to help
maximize cash on hand while minimizing risk.
While still uncommon, many broad-based financial consultants are using
actuaries to help clients with major business decisions. A company may wish
to expand its product line, and employ a consulting firm to study the new
ideas and report on their potential. Actuaries can study the companys current
cost structure, its current products, and the demographics of its customers and
that of its competitors to see how well the new product might do, and how
much benefit the company might derive from it.
Some of the most creative actuarial work is happening in the consulting field,
and as actuaries continue to filter into the broader business world, consultants
will be at the vanguard of that move.
In-House Corporate Actuaries

Large corporations will sometimes hire their own actuaries instead of
bringing on consultants. In many cases, their roles are restricted to managing
internal pension funds, benefits and insurance plans. Actuaries are also
sometimes enlisted to help with financial reporting and other accounting
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issues, though only on the most complex issuestheyre generally too

expensive and too skilled to be relegated to simple bookkeeping.
Due to the requirements of Sarbanes-Oxley, the corporate governance act of
2002, more and more companies are employing risk officers to help
mitigate exposure to the laws often complex requirements. This is a
relatively new field for actuaries, but a bunch have studied the legal and
financial aspects of the law and are now helping companies with exposure to
Sarbanes-Oxley pitfalls.
In a handful of companies, this movement has grown into entire risk
departments, with a chief risk officer heading things up at the executive level.
Regulatory and financial risk are combined into a whole, with the CRO
heading up efforts to vet the companies wide-ranging activities through the
prism of risk. Most risk departments remain part of the office of the chief
financial officer or general counsel, but a few CROs are on par with CFOs
and the companys top lawyers. These new risk offices study anything and
everything, from the various risk profiles of potential factory sites to the
companys potential acquisition of a rival. As these efforts grow, actuaries
have the opportunity to play some of their most active roles ever in the
corporate world.
Its worth noting that these positions are still somewhat rare, and that changes
to Sarbanes-Oxley could prompt businesses to change their internal risk
management departments. That could change the way some businesses
approach risk. However, most actuaries believe that once their worth is
proven, theyll continue to take a more active role in corporate operations.
Actuaries in Government
The government runs pension and benefit programs that dwarf the most
ambitious corporate setups imaginable and actuaries are at the heart of these
programs. Medicare, Medicaid, Social Security, Veterans Affairs, government
worker pension programs and benefitsmillions of Americans rely on
government actuaries so that their benefits and pensions will be there when they
need them. The federal government is one of the largest employers of actuaries,
and several large state governmentsNew York and California, in particular
have their own benefit programs and major retirement funds that require
actuarial work. It isnt glamorous work by any stretch, but its critical to the
functioning of government.

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Likewise, actuaries also serve as checks and balances in a wide range of

government programs. Actuaries work for the White House Office of
Management and Budget, the Congressional Budget Office and inside every
single department in the federal government, ensuring that money is
managed, benefits are paid, and risks are identified and mitigated.
The government increasingly has been using actuaries for many other
purposes as well. Actuaries work for the Commerce and Labor Departments
and the Federal Reserve to project the risks for a variety of events, from
natural disasters to banking scandals. Theyre involved in risk management
for the military, and its continued deployments in Iraq and Afghanistan.
Theyre helping to plan contingencies for natural disasters. And, of course,
theyre still trying to solve the Social Security problem.
A Day in the Life of a Government Actuary
9:00 a.m.: Im at my desk. Generally, I just check e-mail and then pick up
where I left off the day before on whatever Im doing. I work for the
Commerce Department. Right now, Im assigned to a team thats plotting
economic damage and recovery times for a variety of Gulf Coast hurricane
scenarios. That means if a hurricane strikes one city, whats the overall
effect? Does the town have refineries? If so, what could that mean for the
price of gas? How long would it take to pick up that lost capacity?
Ultimately, were going to have full risk profiles for most of the Gulf Coast
cities, and then update them regularly as they rebuild from Katrina and Rita.
10:30 a.m.: Conference call with state economic development officials in
Alabama. These are mostly information trades, where they tell us how things
are going, and we tell them a bit more about what we think will happen down
the road. We take their info and pop it right in the models.
12:00 p.m.: Weve taken to brown-bagging together in the boss office. Shes
good about not making the whole thing about work, but we definitely talk a
lot of shop.
1:00 p.m.: Back at it. We have a whole research department that we can call
on for the raw data that we need. And we can put in requests to other parts
of the government for more information. Sometimes thats as easy as picking
up the phone and getting an answer. But when were modeling recovery
times and need to get a sense of what the National Guard can do, the security
red tape takes months.
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3:30 p.m.: Status update with our section chief. We talk about how our
models are going, which ones are done, what findings need to be pushed
upstairs.
4:30 p.m.: A quick call to a contact I have over at British Petroleum to talk
about getting some more information about their refining activities in a given
place and how theyve hurricane-proofed since Katrina.
5:30 p.m.: That wraps it up for me and I head home. Ill occasionally bring
some work home to finish up if were nearing a reporting deadline.

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n l e y | OLD
U B S | EMBERSHIP
A m e r AND
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E x p ACCESS
r e s s | STO
a l l ALL
i e MOF
a e AULT
| WeS
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Moody's
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JPMorgan
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Moody's
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JPMorgan
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Moody's
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GO FOR THE GOLD!

G V
'

Firm culture
Business outlook

profiles
Central


WSJs top choice)
ACTUA
FIRM
PROFI
ACTUARIAL
FIRM
PROFILES

AEGON USA, Inc.

4333 Edgewood Rd. NE
Cedar Rapids, IA 52499-0010
Phone: (319) 398-8511
Fax: (319) 369-2147
www.aegonins.com
LOCATIONS
Offices in US, Canada & Mexico
THE STATS
Firm Type: Public Company
Chairman & CEO: Patrick S. (Pat) Baird
No. of Total Employees Firmwide:
14,015
EMPLOYMENT CONTACT
See career opportunities at
www.aegonins.com
Hiring and Interview Process

Aegon offers challenging work, exciting growth opportunities and a competitive
reward system for potential employees and offers full-time and part-time positions as
well as internship opportunities.
For a complete list of college internship recruitment events, visit www.aegonins.com/
internships.
Please comment on your summer internship. What kind of work do

interns do?
Actuarial internships are divided into two categories: financial and product development.
Financial interns compile data for experience analyses and prepare related reports,
translate product specifications into valuation assumptions for new products, assist in
statutory, GAAP and tax valuation and other miscellaneous reserving requirements, aid in
the preparation of actuarial portions of financial statements and federal income tax returns,
build and run computer asset/liability models using actuarial modeling software, automate
existing processes by writing programs or macros and organize large amounts of complex
data and present it in a clear and concise manner to aid in risk analysis.
Product development interns assess current and new product designs for feasibility in the
marketplace, price new and existing product designs to ensure that division profit goals are
met, assist with introduction of new products to the marketplace, assist with education of
administrative areas on new products being introduced, assist with product implementation
on our administrative and illustration systems, and test and review final product.
Requirements for an internship at Aegon include the following: junior or senior standing,
working toward a degree in actuarial science, mathematics or statistics; strong mathematical
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and analytical skills, initiative, attention to detail, and strong written and oral
communication skills; desire to work in a team environment; knowledge of MS
Excel or other spreadsheet applications; knowledge of at least one computer
programming language is beneficial and at least one SOA/CAS exam passed is
preferred.
Inside the Firm: Culture and Training

Please describe the corporate culture at your firm.
The AEGON Group strives to create better futures for all stakeholders by living
our core values of respect, quality, transparency and trust. These values guide
our actions and decisions, determine how we conduct ourselves responsibly in
the marketplace and assure that we deliver what we promise. Our core values
are reflected in our motto: respect people, make money, have fun.
We work together to create a culture in which we encourage and provide our
employees incentives for living the core values and being committed to each
others success through teamwork. Everyone is expected to seek the
opportunities, training and resources necessary to succeed. We hold each
other accountable for living our values, demonstrating initiative and
teamwork and acting in the long-term interest of all of our stakeholders.
Please describe any ongoing or other training programs for

employees.
The AEGON Leadership Development Program is a dynamic, experience-based
program combining foundational coursework, divisional assignments and
leadership training. Two to four cross-functional rotations over two years will
provide high potential leaders the broad-based learning experiences
representative of leadership at AEGON. A mentoring program is also part of the
Leadership Development Program.
Please describe other monetary benefits.
AEGON USA companies offer a range of benefits and programs to meet the needs
of our diverse workforce. Member companies may offer additional work, family
and healthy lifestyle programs. AEGON offers all employees medical, dental and
vision plans in additions to flexible spending accounts, life insurance, accidental
death and dismemberment insurance, short-term and long-term disability
programs, a pension plan and a 401(k) program. Additionally, AEGON USA
offers annual bonus plans and stock plans as incentive compensation programs.

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Diversity
We treat all stakeholders the way that we want to be treated, with

consideration for individual and cultural diversity.
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Aetna
151 Farmington Avenue
Hartford, CT 01656
Phone: (860) 273-0123
www.aetna.com
LOCATIONS
Hartford, CT (HQ)
Bluebell, PA
Middletown, CT
THE STATS
Chairman: Ronald A. Williams
CEO: Ronald A. Williams
2005 Firm Revenue Worldwide:
$22.5 billion
2005 Firm Net Income Worldwide:
$1.6 billion
No. of Employees Firmwide: 30,299
EMPLOYMENT CONTACT
Caroline Wilke
Phone: (860) 273-0123
E-mail: staffingcenter@aetna.com
www.Aetna.com/Working
Aetna recruits at Ivy League schools as well as public and private institutions. The
firm also recruits from actuarial science graduate programs, and finds candidates from
job postings on the company web site and actuarial recruiters.
What are the position titles for new hires coming out of undergrad? Out
of grad school?
Actuarial analyst.
Please describe the hiring process at your firm.
We utilize a combination of career fairs, information sessions and campus posting
boards to identify candidates. Both on-campus interviews and on-site interviews, using
competency-based interview questions, are conducted during the hiring process.
What are some of the requirements for jobs?
Candidates should demonstrate strong analytical, communication, technical and
leadership skills as well as an ability to successfully complete actuarial exams.
Previous internship or actuarial work experience are a plus. A 3.0 GPA or above is
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desired with a concentration in actuarial science, mathematics, statistics or

economics.
Do you require or desire undergraduate candidates to have one or
more of the Society of Actuaries or Casualty Actuary Society
exams completed prior to hiring?
Exam completion is desirable. Candidates should demonstrate an ability to
successfully complete actuarial exams.
Please comment on your summer internship.
Aetnas actuarial interns receive hands-on experience analyzing data, improving
processes and learning what actuarial work is all about. Through different
assignments and planned intern activities, interns will see the variety of
responsibilities actuaries have in our company. Intern program benefits include:
Challenging pre-professional assignments reflective of current business needs
Regularly scheduled formal training sessions with actuaries or other Aetna
leaders
Competitive hourly rates
Temporary housing considerations
Assignments typically last for 12 weeks, from mid-May through midAugust.

Step inside and see diverse people working together in a collaborative, cando spirit with one common focus: to exceed our customers expectations and
help them reach their goals. Our employees are proud to be part of Aetna, and
to contribute to the continuation of our rich history and tradition of
excellence. Aetna employees work together openly, share information freely
and build on each others ideas to continually create the next better way.
Nothing is impossible to our Aetna team. We are eager, ambitious learners
and continuous innovators. And we are succeeding. Every day. For more
than 150 years, Aetna has succeeded based on core values of integrity and
innovation, and the dedication of our nationally recognized workforce in the
areas of benefits management. We work together to achieve a common goal.
Our foundation is built on teamwork, camaraderie and trust. Our
commitment to our customers is second to none. We accept the challenge of
meeting and even exceeding our customers expectations when it comes to
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their employees health care coverage and related benefits.

determined to make a difference.
We are
Please describe any mentoring programs at your firm.

At Aetna, we encourage mentoring as a means to help employees achieve
career goals.
Please describe any scholarship programs at your firm.
Aetna supports and encourages employee development by providing financial
assistance to eligible employees who are pursuing a college degree program
or pursuing college course work that is job-related.
Please describe any formal training programs for employees.
Aetna offers a multitude of training options focusing on building the skills
required to be successful on the job. The formal training may take place in a
classroom, though web-based training, or various other mediums.
employees.
Aetnas Actuarial Student Program benefits include challenging
interdepartmental rotations ranging from 12 to18 months, valuable formal
online training opportunities available on demand, periodic in-person training
sessions and networking opportunities.
Do you assist employees with continuing education and actuarial
exams, either financially and/or through training?
Aetnas Actuarial Student Program educational benefits include companysponsored study time, paid review courses and study materials, paid exam
fees and professional society dues, on-site actuarial libraries and study rooms.
Compensation and Hours

What are the starting salaries for the various entry-level positions
at your firm?
Salary is competitive and commensurate with prior work experience.
How does salary/bonus increase per year?
Automatic salary increases upon successful completion of each exam and
upon completion of ASA, plus other economic rewards for eligible
candidates, including performance and promotional increases and bonus
programs.
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401(k) plan, pension plan and an employee stock purchase program.
Please describe other perks.
Aetnas wellness program offers a full range of programs and services, such
as wellness campaigns, health information kits, a toll-free nurse line that can
provide you with information about a variety of health issues, on-site physical
therapy and fitness facilities in some locations and much more.
How often do employees work on weekends?
Rarely to never, but it does happen on occasion.
Other comments on workload/hours.
Actuarial students received company-sponsored study time but students
generally also need to invest substantial personal time to pass actuarial
exams.
Diversity
Please describe any diversity hiring efforts in regards to women.

We actively support the following organizations: Council of Concerned
Women Physicians of the National Medical Association, National Council of
Negro Women, National Association of Women Business Owners, Sisters
Network (Baltimore), Society for Womens Health Research and Womens
Business Enterprise National Council, and Women of the Association of
Latino Professionals in Finance and Accounting. We also work closely with
our employee networks, Aetna Womens Network and Aetna Working
Mothers Network, to contribute to an inclusive environment.
Please describe any diversity hiring efforts in regards to minorities.
We establish relationships with educational institutions and other organizations
that traditionally serve African-Americans, Hispanics and Asians, including
the International Association of Black Actuaries, National Black MBA
Association, National Society of Hispanic MBAs, National Association of
Black Accountants and the Association of Latino Professionals in Finance
and Accounting. These initiatives support Aetnas recruitment and selection
efforts. The full list of organizations with which Aetna maintains affiliations
and partnerships can be found in Aetnas diversity annual report. Aetnas
executive-in-residence program is one way we participate as sponsors and
educational partners with various universities that have large student-of-color
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populations, such as historically black colleges and universities and Hispanicserving institutions. In 2005, our executives participated as keynote speakers
at university events, worked directly with students as mentors, and conducted
mock employment interviews and resume reviews with them. We also work
closely with our employee networks, Aetna African-American Employee
Network, Aetna Hispanic Network and Asian-American Network, to
contribute to an inclusive environment.
Please describe any diversity hiring efforts in regards to gays and
lesbians.
We actively support Out & Equal Workplace Advocates and the National Gay
& Lesbian Chamber of Commerce. We also advertise in gay and lesbian
publications. We work closely with our employee network, Aetna Network
of Gay, Lesbian, Bisexual and Transgender Employees, to contribute to an
inclusive environment.
Additional Comments
Please
visit
our
web
site
for
www.aetna.com/working/students/atp.html.

additional
information:
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AIG American General

2929 Allen Parkway
Houston, TX 77019-2155
Phone: (713) 522-1111
Fax: (713) 523-8531
www.aigag.com
THE STATS
LOCATIONS
Firm Type: Insurance and financial

services organization
CEO: Matthew E. Winter
Chairman: Rodney O. (Rod) Martin Jr.
No. of Employees Firmwide: more
than 4,000
Operations in Approximately
130 countries
EMPLOYMENT CONTACT
Matt Lenaghan
Phone: (713) 831-1388
E-mail: matt_lenaghan@aigag.com
Career web site:
www.aigag.com/life/life.nsf/contents
/aboutus_careers

AIG desires actuaries who possess a BS degree in mathematics, statistics, economics
or finance. A successful candidate should have completed one or two SOA exam and
have strong commitment to pass exams until attainment of FSA. Candidates should
have good problem-solving skills, oral and written communication skills, good
interpersonal skills and the ability to meet deadlines.
Do you require or desire undergraduate candidates to have one or more of
the Society of Actuaries or Casualty Actuary Society exams completed prior
to hiring?
Successful completion of one or two SOA exams is strongly recommended.
The AIG companies offer paid summer internships to upcoming juniors, seniors and
graduate students in business and insurance disciplines in all major business segments.
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The AIG companies summer associate program gives students experience in

the insurance and financial services industry with one of the best in these
fields. Summer associates will be evaluated at the conclusion of the
internship and considered for future employment opportunities at the AIG
companies upon graduation.
Qualified candidates should be undergraduate students entering their junior or
senior year with a GPA of 3.0 or higher majoring in a business-related field
or graduate students working towards their masters in a related business
field. Proficiency in MS Word and Excel preferred.

AIG culture has been described as by media and employees as dynamic,
creative, innovative, fast-paced, constantly evolving, results-oriented and
opportunity driven. The opportunities available at the AIG companies are
numerous; the projects AIG employees endeavor are challenging. AIG is a
company that encourages employees to utilize their strengths for their careers.
AIG offers tuition reimbursement for job-related classes/education. The firm
also offer the AIG Virtual University, which is a web-based training site
offering courses in a variety of business related subjects.

Please describe monetary benefits that you offer such as 401(k),
investment opportunities, stock options or purchase, etc.).
Benefits at AIG include medical and prescription drug coverage, dental
insurance, vision insurance, accidental death and dismemberment insurance,
disability insurance, life insurance, child care and medical reimbursement
accounts, a 401(k) and a retirement plan, and paid vacation time.
Please describe other perks (gym memberships, meal allowance,
company-provided meals/snacks, car services, etc.).
There are numerous perks for being an AIG employee. The Diners Club
Preferred Restaurant Program allows an automatic discount at participating
restaurant bills when using the AIG Diners Club Card. With the discount theater
ticket program offered by AIG, discounted tickets to selected Broadway and offVisit the Vault Finance Career Channel at www.vault.com/finance with
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Broadway shows as well as sporting and special events are available. Discount
packages for golf, skiing and accommodations are available at Stowe Mountain,
and the Orange County National Golf Center gives AIG employees discount
packages including accommodations, meals and daily golf. The NYC Museum
Discounts gives reduced rate or complimentary admission to a variety of New
York City museums for AIG employees, and the movie ticket discounts allows
discounted admission to selected movies and theaters. AIG vendors and
suppliers give retail discounts and access to special promotions.
Diversity
Please describe any diversity hiring efforts in regards to women,
minorities, and gays and lesbians.
One of AIGs objectives is to recruit, hire, train and promote to all job levels
the most qualified applicants without regard to race, color, religion, sex,
national origin, age, disability, military service, marital status or sexual
orientation. Compensation, benefits, transfers, company-sponsored training,
tuition assistance, social and recreation programs are administered without
regard to race, religion, color, sex, national origin, age, disability, military
service, marital status or sexual orientation.
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Allstate
2775 W. Sanders Rd., Suite F4
Northbrook, IL 60062
Phone: (847) 402-5600
Fax: (847) 326-7519
www.allstate.com
LOCATIONS
Operations in 49 US & Canada
THE STATS
Chairman: Edward M. Liddy
CEO: Thomas J. Wilson II
$35.8 billion
$4.99 billion
EMPLOYMENT CONTACT
See careers at www.allstate.com

What are some of the requirements for jobs (GPA, degree, personality,
skills, etc.)?
Allstate looks for potential employees who possess advanced skills in mathematics and
statistics, personal computer skills, written and oral communication skills,
interpersonal skills and knowledge of current business trends, social science, law and
economics.
Please comment on your summer internships.

The summer internship program at Allstate offers a challenging and meaningful work
experience with an attractive compensation package and consideration for full-time
employment. Typically, more than 80 percent of interns who receive full-time
employment offers return as new hires.

Flexible work schedules, business casual dress code, fast-paced, challenging and
collaborative.

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Allstate

Mentoring programs at Allstate allows employees to gain guidance from
experienced professionals and range from one-on-one instruction to
structured group training sessions.
Formal training programs at Allstate include a skills-based training program
for new analysts, one-on-one instruction and structured group training
sessions. Allstate was recognized for its outstanding training abilities by
Training magazine as on of the Top 100 Company for Employee Training and
Development, winning for the fourth consecutive year (2001 to 2004). Onsite undergraduate, MBA and professional courses and a ConSern Education
Program are also available to Allstate employees.
Hours and Compensation

Allstate benefits include medical, dental, vision, employee and dependent life
insurance, accidental death and dismemberment insurance, long-term
disability insurance, a health care flexible spending account, a dependent day
care flexible spending account, group legal, an Allstate retirement plan and a
profit-sharing fund with 401(k) options.
Other notable perks at Allstate include flexible work arrangements, child care
discounts tuition reimbursement and on-site banking service, on-site oil
changes, a vanpool program and a convenience center.
Diversity
Women make up 42 percent of officials and managers at Allstate. Allstate has
been recognized numerous times by different organizations for its regard for
women employees. The firm was voted a 16-year award winner and Hall of
Fame inductee (1990, 1992 to 2006) as one of the 100 Best Companies for
Working Mothers by Working Mother magazine, one of the Best Companies
for Women of Color, also by Working Mother magazine (2004 to 2006),
among the Great Places for Black Women to Work by ESSENCE magazine
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Allstate
(2003 to 2005) and a Top Company for Executive Women by the National
Association of Female Executives (2000 to 2001, 2005 and 2006).
Allstate also has a commitment to hiring efforts for minorities, with
minorities constituting 20 percent of officials and managers. Allstate
Chairman and Chief Executive Officer Ed Liddy says Our competitive
advantage is our people and our people are diverse Diversity is a strength
and a strategy through which the company will continue to realize its growth
goals. Nothing less than an integrated diversity strategy will allow the
company to excel domestically and internationally.
Honors include: Americas Best 50 Companies for Minorities by Fortune

magazine for the fifth consecutive year; Top 50 Companies for Diversity by
DiversityInc magazine, five-time award winner (2002 to 2006); One of the
Best Places to Work for Latinos by Hispanic magazine, award winner for 10th
consecutive year (1996 to 2005); Top 50 Best Companies for Hispanics to
Work by Hispanic Business (2005 and 2006); Leader of Distinction Award for
Supplier Diversity by Saludos Hispanos magazine (2003); Top 10 Companies
for African Americans to Work by DiversityInc (2003 to 2006); and The Top
Company for Blacks in Technology by The National BDPA (Black Data
Processing Associates) and WorkplaceDiversity.com (2003 to 2005).

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Aon Consulting
200 East Randolph
Chicago, IL 60601
Phone: (312)381-4800
Fax: (312) 381-0240
www.aon.com
THE STATS
Firm Type: Subsidiary of Aon
Corporation
Chairman: Donald C. (Don) Ingram
CEO: Andrew M. Appel
LOCATIONS
500 offices in more than
120 countries
EMPLOYMENT CONTACT
www.aon.com/about/careers.jsp

Aons partner schools for Aons Early Career Development Program include Brigham
Young University, University of California-Berkeley, Cornell University, University of
California Los Angeles, University of Georgia, Northwestern University, University of
Illinois, Notre Dame University, University of North Carolina, Miami University,
University of Pennsylvania, St. Johns University, University of Southern California,
Temple University, University of Texas and University of Wisconsin.

The interview process begins with online application. Selected candidates will
continue with an on-campus or phone interview, which lasts about 45 minutes. Those
selected after the on-campus or phone interview will be contacted for an office
interview.
Requirements for a job at Aon include relevant work or internship experience, a mature and
professional demeanor, involvement in extracurricular activities, strong communication
skills (both verbal and written), the ability to cultivate relationships, critical thinking,
problem-solving and analytical skills, the ability to work as an integral part of a team, and
fostering teamwork, as well as the ability to work independently or with minimal direction,
adaptability, a positive attitude, a results-oriented ability, strong PC skills are (including
knowledge of Microsoft Office suite) and a minimum overall GPA of 3.0 are strongly
preferred.
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Summer internships are available to rising college seniors enrolled and
working toward undergraduate degrees of all types with a minimum GPA of
3.0. It is a 10-week program great for networking that teaches business
etiquette, communication and presentation skills, and performance
management.

Aon awards eight National Merit Scholarships to children of employees each
year. The scholarships range from $500 to $3,000 per year for four years of
college. Both educational loans for employees and family members at low
interest rates and a tuition reimbursement program for employees for jobrelated courses and degree programs are also available.
Training programs for employees include external college and university
courses, Aon University, and business and job-specific training. Aon
University serves Aon Corporation, its subsidiaries, its employees, and its
clients through curricula that provide knowledge and skills to link business
goals, personal development and client needs. It is organized into schools and
curricula that help students meet their career needs, such as a school of
business, school of sales, school of risk and consulting and school of
technology.

Aon benefits include subsidized medical and dental coverage for employees,
their spouses and their children; group term life insurance, accidental death and
dismemberment coverage and short-term disability; matching employees
donations to tax-exempt organizations such as PBS, the American Lung
Association, universities and art institutes; 401(k) plan; an employee assistance
program, which offers a free, confidential service for employees or family
members who are experiencing personal problems such as drug or alcohol
abuse, financial problems, emotional upsets, child care or elder care problems,
and marital problems including domestic violence.

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Aon Consulting
Diversity
Aon offers generous maternity leave to its women employees.
Aon celebrates the unique cultural and ideological attributes that make up
who we are as individuals and as a community. The firm has received many
honors in its regards to its minority employees. It scored a Good or B on
its Diversity Report Card from the LaSalle Street Project study and the 2005
Diamond Award from the National Association of African Americans in
Human Resources. Aon was also awarded the 2005 Employer of Choice
award by the Minority Corporate Counsel Association and received 2004
recognition by the International Association of Black Actuaries for its
contributions to the organization.
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Arkansas Blue Cross Blue Shield

320 W. Capitol Ave., Suite 840
Little Rock, AR 72203
Phone: (501) 378-2863
Fax: (501) 378-2984
www.arkbluecross.com
LOCATION
Little Rock, AR (HQ)
THE STATS
Firm Type: Private Company
Chairman: Hayes McClerkin
CEO: Robert Shoptaw
No. of Offices Worldwide: 1
No. of Actuarial Employees Firmwide:
27
EMPLOYMENT CONTACT
Samuel C. Vorderstrasse
Phone: (501) 378-2863
Fax: (501) 378-2984
E-mail:
scvorderstrasse@arkbluecross.com
www.arkansasbluecross.com/about/
jobopenings.aspx
Where does your firm recruit for employees?

Actuarial recruiters, job postings, www.soa.org.
In what locations do you hire actuaries?
Little Rock, Arkansas
In what lines of business do you utilize actuaries?
Health and dental.
of grad school?
Actuarial Analyst I.

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Arkansas Bluse Cross Blue Shield

One-day interview with eight to 10 actuarial employees, asking about
education and ascertaining fit.
Math-related degree, two exams, computer skills are a plus.
We do not hire undergrads.
Please comment on your summer internship internships.
Between junior and senior years preferred, $11 per hour, project work. Rarely
are interns hired on full time. Interns are never hired immediately following
their internship.

Online training.
What kind of support and/or benefits do you provide for
candidates pursuing their FSA?
Competitive actuarial student program included, company study time, exam

seminars, raises.

What are the starting salaries for the various entry-level positions at
your firm? Bonuses? How does salary/bonus increase per year?
Competitive salary, yearly bonuses based on performance.
401(k) matching available, online investment choices.
Company gym, flexible work schedules.
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Arkansas Bluse Cross Blue Shield
On average, how many hours do professionals work in the office

per week?
40 to 50.
How often do they work on weekends?
Rarely.

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AXA Financial
1290 Avenue of the Americas
New York, NY 10104
Phone: (212) 554-1234
www.axa-financial.com
LOCATIONS
Operations in North America,
Western Europe & the AsiaPacific region
THE STATS
Chairman: Henri de Castries
CEO: Christopher M. (Kip) Condron
$1.07 billion
EMPLOYMENT CONTACT
See career opportunities at
www.axaonline.com.

AXA Financial potential employees should have a proven track record of success, a
solid work ethic built on integrity and trust, a desire to attain personal financial goals,
excellent communication and presentation skills, and the motivation to learn and work
with facts and figures.

For a summer internship at AXA Financial, a minimum GPA of 3.0 is required. Hours
are flexible, but interns must be willing to work between 10 to 20 hours a week.
Students must be enrolled in a course that provides college credit for hours worked for
the duration of the internship if the internship is unpaid.

AXA Financial has a collaborative work environment, offering challenging
assignments to its employees.
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AXA Financial awards more than $1.3 million a year in scholarships with
winners in every state nationwide. Scholarships of $25,000, $10,000 and
$2,000 focus on students personal accomplishments. Winners are known as
AXA Achievers.
They are ethnically and economically diverse, but they share these qualities:
ambition and drive, determination to set and reach goals, respect for self,
family and community, and the ability to succeed in college.
employees.
Advanced training, coaching and joint work are available to AXA employees.
At AXA, total rewards programs are offered (compensation, equity and

benefits including medical and dental), along with 401(k) and wealthbuilding programs, including stock options and AXAs SharePlan.

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Blue Cross and Blue Shield of

Massachusetts
401 Park Drive
Boston, MA 02215
Phone: (617) 246-5000
www.bluecrossma.com
LOCATIONS
Boston, MA (HQ)
Six offices Statewide
THE STATS
Chairman: William C. Van Faasen
CEO: Cleve Killingsworth
$5 billion
$265 million
EMPLOYMENT CONTACT
Laura Horlitz
Phone: (617) 246-3426
Email: laura.j.horlitz@bcbsma.com
www.bluecrossma.com/careers

Where else does your firm recruit for employees?
College recruiting, professional networks, employee referrals, Internet posting and

sourcing, employment agencies.
of grad school?
Actuarial analyst, financial analyst, health data analyst.
Phone interview, full day of in-house interviews with leaders and colleagues.
Interviews ask for specific examples of accomplishments.
Undergraduate or graduate degree in math, statistics, economics, actuarial science. We
seek individuals with excellent communications and analytical skills, desire to work in a
fast-paced environment, and with potential and motivation to take on leadership roles.
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Achievement of one successful actuarial exam is required for admittance to
the actuarial student program.
The hourly intern rate is competitive and currently between $18 and 20 an
hour, depending on exams and experience. The interns are full participants in
the actuarial and analytic services department working on projects that
support the business. The percentage of interns hired for full-time positions
varies from year to year, and successful summer interns are given priority in
the hiring process for full-time employees.

BCBMSA has a fast-paced, exciting, engaged workforce committed to our
company mission to always put our members health first. We play an
active role in our community through corporate sponsorships and volunteer
activities.
The actuarial student program includes company-paid study time and

organized study groups among the participants. In addition, students rotate
through all areas of the actuarial and analytic services department, further
deepening their experience. Within the finance division, we have a rotational
program as well.
employees.
Our development and organizational effectiveness department offers many
professional development opportunities, including a strategic leadership
curriculum.
The company offers a tuition benefit for undergraduate as well as graduate degree
programs. As mentioned above, we support study hours for actuarial exams.

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at your firm? Bonuses? How does salary/bonus increase per
year?
Salaries are competitive and based on experience and exam progress. Blue
Cross Blue Shield of Massachusetts has a companywide bonus program and
yearly merit-based salary increases. Actuarial students receive raises upon
successful completion of each actuarial exam.
Our employee benefits portfolio is extensive and includes 401(k) with
company match and fully-paid company pension plan.
Fitness club discounts up to $450 per year, commuting discounts and free
shuttles, on-site day care.
per week?
40 to 50.
Rarely/never.
Diversity
minorities and gay and lesbians.
Blue Cross and Blue Shield of Massachusetts demonstrates an ongoing
commitment to building and retaining a diverse workforce. We partner with
key local, regional and national professional organizations and civic
associations to target professionals that can help us meet the needs of our
diverse membership, providers and other business partners. These
partnerships include but are not limited to: The Latino Professional Network;
Association of Latino Professionals in Finance & Accounting; The National
Black MBA; The National Hispanic MBA; National Association of Asian
American Professionals; Urban League of Eastern Massachusetts;
Massachusetts Rehabilitation Commission; Operation A.B.L.E.; and the New
England Regional Black Nurses Association.
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Additional Comments
The actuarial and analytic services department at Blue Cross and Blue Shield
of Massachusetts plays an integral role across the entire company in ensuring
profitable growth while continuing to put our members health first. The
department is responsible for a variety of traditional and nontraditional
actuarial functions including pricing, financial planning, reserving, financial
management of provider contracting and care management strategies, and
trend and medical expense informatics.

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Buck Consultants
1 Pennsylvania Plaza
New York, NY 10119-4798
Phone: (866) 355-6647
E-mail: info@buckconsultants.com
www.buckconsultants.com
THE STATS
Firm Type: Independent Consulting
Subsidiary of Affiliated Computer
Services
Senior Managing Director: Jan Grude
LOCATIONS
New York, NY (HQ)
More than 40 offices worldwide
EMPLOYMENT CONTACT
Patti McCaig
Phone: (201) 902-2536
E-mail:
Patti.McCaig@buckconsultants.com
See join our team at
www.buckconsultants.com

To qualify for an internship at Buck Consultants, you must be enrolled in an accredited
college program working towards a bachelors or masters degree in business (i.e.
finance, accounting, human resources, marketing, etc.), computer science,
management information systems or computer engineering, have a minimum 3.0
cumulative GPA, have completed your first year of undergraduate studies or first year
of graduate school, possess a professional attitude and a desire to excel, be able to meet
the requirements established by the department manager and participate as a member
of a team. Other requirements will vary by department. Interns will be assigned a
supervisor. Internships do not guarantee future employment. For more information, email internships@acs-inc.com.

Buck Consultants University (BCU) is a comprehensive training program providing
Buck staff with cross-functional development opportunities for a broad-based
consulting career. The program is composed of technically focused sessions designed
to span the career of a consulting professional.
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employees.
Technical training, project management, leadership/management, change
management, career development, interpersonal skills, diversity, client care.
Actuarial student academic program (ASAP): time off with pay, study time,
pay raises upon completion of exams (associate of the Society of Actuaries
$3,000 raise/$3,000 bonus; enrolled actuary ($3,000 raise/$2,000 bonus;
Fellow of the Society of Actuaries ($5,000 raise/$5,000 bonus), exam fees
reimbursed, books and study materials reimbursed.
Compensation
Other benefits at Buck Consultants include life insurance, accidental death

insurance, disability insurance, medical insurance, dental insurance, vision
insurance, supplemental disability insurance, supplemental life insurance,
401(k) plans, an employee stock purchase plan, vacations, holidays and sick
leave.

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Chubb Group of Insurance

Companies
15 Mountain View Road
Warren, NJ 07059
Phone: (908) 903-2000
Fax: (908) 903-2027
www.chubb.com
LOCATIONS
120 offices in 29 countries
THE STATS
Chairman & CEO: John D. Finnegan
2006 Firm Revenue Worldwide: $12
billion
$2.5 billion
EMPLOYMENT CONTACT
See careers at www.chubb.com

Requirements for a position at Chubb include exceptional mathematical abilities and a

high level of academic achievement. Chubb looks for business graduates with majors
in accounting, information systems, finance or other related fields who are able to
present solutions clearly and concisely.

Formal training at Chubb consists of an orientation for new hires, advanced training for
seasoned employees, online learning opportunities, on-the-job developmental
experiences, a variety of classroom programs and a variety of programs to help
employees with their leadership and general business skills.
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Chubb Group of Insurance Companies
Compensation
Benefits at Chubb, which are available after 30 days of employment, include
medical, dental, vision care, disability coverage, employee life insurance,
personal accident insurance, spending accounts, financial planning, business
travel accident insurance, paid time off, family leave (can take up to 12 weeks
unpaid), adoption assistance, WealthBuilding 401(k) plans and the commuter
benefits plan (pays for commuter expenses). A total rewards program called
ChubbChoice allows employees to choose their own plans to fit individual needs.
Diversity
President, Chairman and CEO John D. Finnegan describes Chubb as a

welcoming workplace for all employees, specifically including women,
people of color, gay, lesbian, bisexual and transgender employees. Chubb
has been named one of the top U.S. companies in DiversityInc magazines
annual list of the Top 50 Companies for Diversity, and received the 2003
Outie Significant Achievement Award from Out & Equal Workplace
Advocates for advancing a safe and equitable workplace for GLBT
professionals.

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CIGNA
File name: pp_116_cigna.pdf
page 116
CIGNA Corporation
900 Cottage Grove Road, B-261
Hartford, CT 06152
Phone: (860) 226-4827
Fax: (860) 226-3003
www.cigna.com
LOCATIONS
100+worldwide
THE STATS
CEO &Chairman: H. Edward Hanway
$16.7 Billion
$1.6 Billion
EMPLOYMENT CONTACT
Brian Evanko, FSA
Phone: (860) 226-4827
Fax: (860) 226-3003
E-mail: brian.evanko@cigna.com
careers.cigna.com/cignapage.aspx?
page=40

The firm annually recruits for undergrads at several U.S. univiersities, including
Pennsylvania, Iowa, Michigan, Nebraska, Penn State, Texas, Connecticut, Wisconsin,
Drake, Purdue and Temple. In Canada, the firm recruits undergrads at universities such
as Manitoba, Waterloo and Western Ontario. In addition, the firm recruits for
employees via web sites (soa.org and beanactuary.org), job postings and search firms
(contingent recruiters).
What are the position titles for new hires coming out of undergrad and
grad school?
Full-time hires: actuarial senior analyst or actuarial specialist. Summer intern hires:
actuarial trainee.
1) Initial interview: can occur on campus or via phone. 2) Home office interview: meet
with program director and four other current program members or FSAs.

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Key competencies that we are seeking are: analytical, technical, communication,
leadership and business acumen. For full-time associates, minimum qualifications
include an undergraduate or graduate degree; 3.2 GPA; completion of at least one
actuarial exam toward ASA/FSA designation; outstanding problem-solving, analytical
and interpersonal skills; excellent verbal and written communication skills and
presentation skills; and the desire to develop business and actuarial skills through
ongoing training and core/nontraditional rotations.
Do you require or desire undergraduate candidates to have one or more
of the Society of Actuaries or Casualty Actuary Society exams completed
prior to hiring?
We prefer at least one exam passed, but this is not a strict requirement if other
competencies and requirements are met.
We hire 25 summer interns annually for the Hartford, Conn., office and 10 summer
interns for the Philadelphia, Pa., office. Interns earn $20+ an hour, based upon exams.
Interns also receive fully-subsidized, furnished housing. They work on high-impact
projects, hand-picked by the program director of the AEDP and other FSAs. Historically,
about 75 percent of interns have received full-time offers and about 80 percent of those
have accepted the offers.

CIGNA is an employee benefits company focused on improving the health, well-being
and productivity of its customers and members. The company is deeply rooted in
financial values and places a very high degree of trust in its actuaries.
The PAL program for entry-level new hires partners a full-time actuarial student with
each new hire. Many students also build relationships with CIGNAs 90+ FSAs.
First-day online orientation, full-day AEDP orientation each September, AEDP intranet
site updated with relevant information, classroom-based training courses on
interviewing, organizational skills, influence skills, Skillsoft and Books 24x7 online
self-study applications.
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Complete financial support is provided for actuarial exam fees, actuarial exam
seminar fees, travel to seminars and exams, and textbooks and study notes.

Starting salaries for entry-level actuaries are $50,000+, depending upon
number of exams passed. Future base salary increases occur when exams are
passed (fixed salary increase by exam) and during the annual performance
review cycle. Annual merit increases average more than 3 percent and vary
based upon job performance. All actuaries are eligible for an annual bonus,
which varies by job performance. Senior-level actuaries are eligible for stock
options and/or stock grants.
Please describe other monetary benefits that you offer.
Competitive defined benefit pension plan, 401(k) plan with company
matching contributions, competitive basic life insurance, disability insurance,
health insurance and dental insurance.
Many full-time program members are involved in recruiting efforts for
candidates. This includes full reimbursement for travel and meal expenses.

per week?
Roughly 40 hours per week.
Rarely.
Diversity
Historically, 40 to 50 percent of our actuarial hires have been female. We
have flexible work arrangements available, and have received recognition
from Working Mother magazine.

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We actively recruit candidates with diverse ethnic backgrounds, and we
sponsor both H-1B and TN visas. Historically, about one-third of our
actuarial hires have been ethnically diverse.
Additional Comments
CIGNA hires actuaries for the Hartford, Conn., and Philadelphia, Pa.,
locations. CIGNA currently has about 40 actuarial students in the
Connecticut office and about 20 actuarial students in the Pennsylvania office.
CIGNAs actuaries provide actuarial support to the following divisions and
product lines: group health care (CT), group life and disability (PA),
international (PA), reinsurance (CT), corporate actuarial (CT), investment
management (CT), corporate owned life insurance (CT) and settlement
annuities (CT).
CIGNAs actuarial executive development program is run by a full-time
dedicated resource, who is an FSA. The program director is a graduate of the
AEDP and is responsible for recruiting, job rotations, compensation and
ongoing governance.
CIGNAs AEDP features job rotations every 18 to 24 months into new

divisions or functional areas. The job rotations are facilitated by the program
director, in conjunction with program members and business leaders. FSAs
continue to rotate every two to three years.
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(Time to New Job)
professionals.


CNA Financial Corporation

333 S. Wabash
Chicago, IL 60604
Phone: (312) 822-5000
Fax: (312) 822-6419
www.cna.com
LOCATIONS
Operations in the US, Canada,
Europe, Asia-Pacific Region &
Argentina
THE STATS
Chairman & CEO: Steven W.
Lilienthal
$290 million
EMPLOYMENT CONTACT
Go to careers at www.cna.com

The firms CNA On Campus program recruits from colleges and emphasizes giving
employees an opportunity to build your career and challenge yourself while you
continue to learn.
Please describe any ongoing or other training programs for employees.

CNA gives its employees access to the tools they need to develop their careers. At
CNA, employees have access to job-specific training, leadership skill development and
productivity courses.
Learning and development methods available to employees are also varied, including
traditional classroom learning, computer-based learning, online conferences and even
some on-site university programs. Learning and development opportunities include
tuition reimbursement, university collaboration onsite degree programs, jobspecific
courses, professional designation programs, The CNA Management Institute, business
leadership program, computer productivity courses, personal effectiveness courses,
discounts for financial services training and testing material, free and discounted
courses, and book discounts.
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Diversity
CNA has taken many steps to make diversity a vital part of the way it does
business. It strives to ensure diverse talent at all levels, develop diversity
awareness at all levels and functions of employment, encourage all
employees to practice inclusion to ensure maximum employee engagement
and commitment, establish staffing practices, training and development
programs and employee benefits to attract a diverse workforce, develop
partnerships and contracts with minority, women-owned businesses,
exploring new and diverse markets, customers and distribution channels for
CNA products and services, understand global cultures, customers needs and
business practices and develop strategies to meet these needs and partner with
and investing in the diverse communities where CNA does business.

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Conseco, Inc.
11825 N. Pennsylvania Street
Carmel, IN 46032
Phone: (317) 817-6100
Fax: (317) 817-2847
www.conseco.com
LOCATIONS
Major offices in:
Carmel, IN
Chicago, IL
Philadelphia, PA
THE STATS
Chairman: R. Glenn Hilliard
CEO: Mr. Claude James Prieur
$4,326,500
$324.9 million
EMPLOYMENT CONTACT
www.conseco.com/wsc/careers/
careers.shtml
The firms web site extols the virtues of working for the company, noting if youre
looking for a career opportunity to learn, grow and be a part of a dynamic
organization, we believe you will find no better company than Conseco.
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Deloitte Consulting LLP

1633 Broadway, 35th Floor
New York, NY 10019
Phone: (212) 492-4500
Fax: (212) 492-4743
www.deloitte.com
LOCATIONS
98 US offices
THE STATS
Chairman: Sharon Allen
CEO: James H. Quigley
2006 Firm Revenue Worldwide: For
the fiscal year ending May 31, 2006,
Deloitte and Touche USA LLP and its
subsidiaries recorded $8.77 billion in
revenues
Deloitte Consulting LLP is a subsidiary
of Deloitte & Touche USA LLP; US
Member Firm of Deloitte Touche
Tohmatsu.
EMPLOYMENT CONTACT
careers.deloitte.com

Deloitte and Touche annually recruits at Cornell, Columbia, the University of
Wisconsin, the University of Texas, the University of Connecticut, Penn State, UCLA,
UC Berkeley, New York University, Rice University and Vanderbilt University. We look
for students who have their masters in statistics and, on occasion, actuarial science.
Where else does your firm recruit for employees?
All of the aforementioned.
of grad school?
Undergrad = analysts; Grad school = consultants and senior consultants.
Undergraduate and graduate students typically complete two rounds of interviews that
consist of behavioral and case study formats. Each round consists of one to two
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Deloitte Consulting
interviews lasting between 30 and 60 minutes. Interviews take place both on

campus and in the office.
Please see our posted job description at your campus for details. In general,
we are interested in the following attributes:
Bachelors and/or masters degree with minimum of 3.2 or higher
cumulative GPA strongly preferred
Ability to learn, apply and communicate actuarial concepts and ideas
Superior research, analytical and problem-solving skills
Demonstrated capabilities in teamwork and leadership
Effective listening skills and attention to detail
Strong written and verbal communication skills
Computer skillsMicrosoft Office, research, etc.
Demonstrated commitment to employee benefits, organizational effectiveness,
compensation, health care, insurance and/or risk management through
classes/project work and/or a past summer internship or part-time job focusing
on these or related subjects
Interest in taking SOA or CAS actuarial exams, with at least one exam
passed
Demonstrated ability to synthesize quantitative analysis and effectively
relay this information to others

This is not a requirement; however, we expect that undergraduate students
would have at least one exam either scheduled or already taken at the time of
interview, as well as a plan to pursue actuarial credentials.
Please comment on your summer internship. What kind of work
do interns do?
Interns work on projects that are similar to those of a full-time employee.
Interns support teams on client project delivery in a variety of industries,
developing business consulting and specialized skills. Actuarial interns
typically work in one of the following areas: life and property/casualty or
retirement and health care. Primary activities include concentrating on client
project delivery and internal practice growth through researching and
assessing industry leading practices and business trends, performing financial
modeling and data analysis, pursuing relevant actuarial credentials, aiding in
the creation of client presentations and assisting in the development of sales
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proposals. A summer internship with Deloitte Consulting LLP is typically 10

weeks in length. Interns also participate in a summer internship conference
to help develop leadership and networking skills.

At Deloitte Consulting LLP, our people and our culture are unique. Weve
been described as collegial, collaborative, team-oriented, down-to-earth,
pragmatic, smart, confident, experienced and focused on results. People who
like working here enjoy working on several types of projects at once,
traveling and becoming subject-matter specialists. All share a vision of
helping our clients in their efforts to address incredibly tough business
problems, while providing unparalleled service and uncompromising
commitment to the client.
Each human capital analyst completes the first week of training in office (HR,
as well as business/Deloitte Consulting-specific training), and then, in the
second week, participates in national human capital analyst (HCA) training
with all of the other new HCAs across the country. Continuous training is
always available, both live, classroom-like training and virtual e-Learning.
Employees receive study time for multiple exam sittings, along with
materials, preparatory seminars and exam fees paid for by Deloitte
Consulting. Employees are compensated for each hour of exam(s) passed.

Please describe any monetary benefits.
Deloitte & Touche USA LLP and its subsidiaries provide two retirement plans
designed to help employees save money, reduce their taxes, assist in their
retirement goals and help them build a solid foundation for additional
financial security during their retirement years: a 401(k) plan and a pension
plan.

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per week?
The number of hours worked per week will vary depending on client
commitments, firm initiatives and personal commitments; however, the
number of hours worked is typically 40 to 50 hours per week.
As above, the hours worked on weekends varies based on client
commitments, firm initiatives and personal commitments. A position with
Deloitte Consulting LLP will require practitioners to be on site frequently at
the clients office, so there is considerable travel required. Although travel
arrangements depend on client project requirements, we strive to implement
work flexibility whenever possible.
Diversity
Deloitte & Touche USA LLPs Womens Initiative (WIN) has won national
acclaim and recognition for its program and cutting-edge thinking
(www.deloitte.com/us/womensinitiative).

Over the past few years, Deloitte Consulting LLP has been actively involved
in and cosponsored recruiting efforts with a number of diversity-focused
conferences, such as the National Hispanic MBA and National Black MBA
conferences. In 2006, Deloitte Consultings human capital practice chartered
a team of professionals to launch a diversity campus recruiting strategy and
plans to make the human capital practice the preferred human capital
consultancy and employer of choice for diverse professionals. Through this
effort we have built a robust and diverse pipeline that supports our
organizations shared value of strength through diversity. Deloitte Consulting
has received numerous accolades, including the National Black MBA
Associations Torch Award in 2005 (www.deloitte.com/us/diversity).
Please describe any diversity hiring efforts in regards to gays and
lesbians.
Deloitte & Touche USA LLP and its subsidiaries are very proud of their nondiscrimination policies and domestic partner benefits program. Over the years,
Deloitte Consulting has been actively involved in and cosponsored recruiting
efforts with the Reaching Out MBA conference, which specifically targets gay
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and lesbian MBAs. We have received numerous accolades, including Diversity

Inc. naming Deloitte & Touche USA LLP to its list of companies in the Top 10
for GLBT in 2005 and 2006 (www.deloitte.com/us/diversity).
Additional Comments
Deloitte Consulting LLPs human capital practice offers actuarial consulting

services among several disciplines. Our practice specializes in pension,
health care, property/casualty and life actuarial serviceswith service
offerings ranging from financial modeling to retirement plan design, audit
support to merger and acquisition services, plan compliance and litigation
support to annuity product design along with many others. In addition to
traditional actuarial services, Deloitte Consulting has one of the premier data
mining and predictive modeling practices and is a leader in health care plan
design and enterprise risk management (ERM). Our practitioners are
renowned specialists in their field and offer support and creative solutions to
some of the worlds largest organizations.

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Ernst & Young LLP

5 Times Square, 14th Floor
New York, NY 10036-6530
Phone: (212) 773-3000
Fax: (212) 773-6350
www.ey.com
THE STATS
Chairman & CEO:
James S. (Jim) Turley
No. of Employees Firmwide:
114,000
LOCATIONS
EMPLOYMENT CONTACT
See careers at www.ey.com

Ernst & Young looks for employees based on who they are and what they stand for.
Characteristics, as defined by its value system, include people who demonstrate
integrity, respect and teaming, who have energy, enthusiasm and the courage to lead,
and people who build relationships based on doing the right thing.
Please comment on your summer internship. What kind of work do

interns do?
An internship opportunity at Ernst & Young gives students the opportunity to work at a
large, international firm. Interns see how experienced employees carry out assignments
and understand the value the company places on success. Its an excellent opportunity to
apply the analytical and problem-solving skills acquired at school in an actual business
setting. Tasks include doing research, helping conduct audits, working on marketing
strategies and assisting in capital-sourcing efforts. Interns also assist with tax planning
engagements and those involving mergers, and interns also learn about the audit process
then apply audit conceptslike internal control, cash, accounts payable and current
liabilities-to reallife situations. The interns also get the chance to attend EYs
international conference for interns, held in Orlando every August. This event helps
hundreds of interns from around the world experience the firms teaming culture, learn
leadership skills and network with future colleagues. Interested students can visit the Ernst
& Young web site to see when the company will be recruiting on their own campus.
Ernst & Young also has a summer leadership program (SLP)a two-day program
designed for top undergraduate students who will be interviewing with our assurance,
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technology and security risk services, or tax practices for an internship or fulltime position.

Ernst & Young uses a four-pronged approach to culture including the values of
learning, experiences, relationships and feedback. Through learning, the firm
wants employees to expand their own knowledge and realize their own personal
goals. The value of learning places emphasis on building confidence as well as
a resume. The relationship values teach employees to network and mentor. The
feedback value stressed by Ernst & Young provides feedback, goal-setting,
development plans and self-assessment to employees.

at your firm?
Base salary at Ernst & Young compensates each employee for their individual
value that he or she brings to the firm. Ernst & Young tries its best to make
base pay externally competitive, internally equitable and related to
performance. The variable pay program recognizes employees who go above
and beyond normal expectations and can be divided into three types: high
impact, recognition and promotion bonuses.

Traditional benefits at Ernst & Young include medical, dental, vision
coverage, and health care and dependent day care reimbursement accounts.
Savings and retirement benefits include 401(k) plans. Life, long-term care,
disability, business-travel and other insurance, legal plans, vacations and paid
time off are also given to employees.
Notable perks include a concierge service, which provides unlimited access
to a concierge service that frees employees from time-consuming taskssuch
as reservations, event, party and vacation planning, household contracting,
errand-running and ordering gifts.

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Diversity
Ernst & Young realizes that diversity creates good business. EY was the first
Big Four firm to establish a partner-led office for the recruitment and
retention of minorities and the first to host an international conference
dedicated solely to advancing womens leadership. It was also the only Big
Four firm to host an annual gathering of U.S. and Canadian minority leaders
to share ideas and concerns. The company also created an Office of Minority
Recruiting, an Office of Diversity Strategy and Development and an Office
for Flexibility Strategy, and the Office for Gender Equity Strategy to maintain
an inclusive environment at Ernst & Young.
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Farmers Insurance Group of

Companies
4680 Wilshire Boulevard.
Los Angeles, CA 90010
Phone: (208) 239-8400
www.farmers.com
LOCATIONS
Based in Los Angeles, CA, and
operates in 41 states across the
country
THE STATS
Firm Type: Subsidiary of Zurich
Financial Services
CEO: Paul N. Hopkins
18,000
EMPLOYMENT CONTACT
Go to career opportunities at
www.farmers.com

According to its web site, Farmers offers paid internships where students will be part
of a team of experienced Farmers employees, working on real-world projects with realworld applications. Interns are encouraged to bring ideas to the table and receive
the kind of education only hands-on training can provide. The firm notes that many
interns return after graduation to take full-time positions with Farmers.

As a tool to identify top candidates and their strengths, Farmers uses behavioral based
interviewing, which states that your behavior in the past can help understand and
predict your success in the future. For an interview, a candidate should be able to
answer the following questions: Describe your current/most recent job duties and
responsibilities. In what sort of work environment/with what sort of supervisory style
are you most successful? Of which of your past accomplishments are you most proud?
What are the most valuable lessons youve learned from past work experiences, and
how have you applied them? Which of the skills youve picked up at the positions on
your resume do you are most relevant into this position and why? What are your longterm goals in this industry? Describe a problem you encountered at one of your jobs
and how you handled it.

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Compensation
There are numerous benefits at Farmers. Their profit-sharing program offers

employer-funded profit-sharing plans, and pension plans provide plans that
will give employees monthly benefits after retirement. Medical coverage
includes traditional indemnity plans and HMOs available in most areas, and
dental and vision coverage are also offered by Farmers. Health care and day
care accounts reimburse employees tax-free. Life insurance includes $10,000
of basic life insurance with supplemental life insurance up to five times pay
also available, and $10,000 basic accident (AD&D) insurance with
supplemental AD&D insurance up to five times pay is also available. Life
insurance for spouses is offered up to $50,000, and child life insurance up to
$10,000 is available. Farmers has an employee assistance program (EAP)
that provides counseling sessions and a 24-hour hotline for personal and
family problems. Long-term disability is an employer-funded plan that
provides a monthly benefit equal to 60 percent of salary to eligible employees
who become totally disabled.
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GEICO
One GEICO Plaza
Washington, DC 20076
Corporate Phone: (800) 824-5404
Auto, Sales & Service Phone:
(800) 861-8380
www.geico.com
LOCATIONS
12 major US locations
THE STATS
Firm Type: Private Company; wholly
owned subsidiary of Berkshire
Hathaway
Chairman, President & CEO, GEICO:
Tony Nicely
President & CEO, Capital Operations:
Lou Simpson
2005 Assets: $21.2 billion (as of
12/31/05)
EMPLOYMENT CONTACT
College Recruiting
Phone: (800) 824-5404, ext. 2802
Fax: (301) 986-3092
E-mail: jobs@geico.com
www.geico.com/oncampus

Public schools: We actively recruit actuarial science and math students at the
Pennsylvania State University, Temple University, the University of Maryland, North
Carolina State University and Ohio State University. We will accept actuarial
candidate resumes from any accredited college or university.
Private schools: We also actively recruit actuarial science and math students at
Howard University and American University. We will accept actuarial candidate
resumes from any accredited college or university.
In addition, we recruit employees via our corporate web site, www.geico.com/oncampus,
specific school career web sites, Monster.com and Yahoo! HotJobs.

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What are the position titles for new hires coming out of
undergrad and grad school?
Actuarial assistant.
When you start your career as an actuarial assistant at GEICO, youll work in
one of two areaspricing or reserving. Placement in either area is something
we can discuss during the interview process.
In pricing, well teach you about our property-casualty insurance business,
and one of your main responsibilities will include helping us to set our
insurance rates. To do this, youll analyze past driver experiences and present
driver conditions, and assess related trends. Not only will you analyze
automobile rates, but you may also get to work with motorcycle, RV or ATV
data.
If you start your career in reserving, youll work on a team that determines
the amount of money GEICO needs to hold in reserve in order to pay out
future insurance claims.
Regardless of which department youre in, a typical day will include
analyzing premium and loss data using various computer and statistical
programs, helping to develop new insurance products, assisting our
underwriters in determining drivers risk levels, and suggesting systems
updates, capabilities and requirements.
After gaining on-the-job experience in one area, you could consider moving
into the other discipline to gain additional experience and further your career.

Candidates are required to submit a resume, cover letter, SAT or ACT score,
overall GPA and unofficial transcripts to a human resources representative.
They can submit this information during career fairs, on-campus interviews,
or online at jobs@geico.com.
After a candidates information is reviewed, an initial phone interview may
be conducted through human resources. Successful candidates may be
recommended directly to the actuary department for further consideration.
Some candidates may be invited to interview on site with actuary supervisors,
managers and senior management.
A bachelors degree in actuarial science, mathematics or related field and an
overall undergraduate GPA of at least 3.0 are required for GEICOs actuarial
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assistant position. We also require strong computer, analytical and

communication skills.
GEICO does not require completed actuarial exams prior to hiring
undergraduate candidates. However, preference is given to candidates who
have taken and/or passed at least one CAS or SOA exam.
We do not offer actuarial internships.
GEICO offers internships in our Virginia Beach and Fredericksburg, Va.,
regional offices. This eight to 10-week, paid internship exposes participants
to various aspects of our property-casualty insurance operations by working
on corporate projects, attending meetings and interacting with associates at
all levels.
To be eligible for an internship, candidates must be a sophomore or junior at
an accredited college or university, have at least a 3.2 overall GPA and be
interested in gaining real-world business experience.

As you search for a career, be sure to select an employer that offers more than
just a jobchoose a company that has been and will be successful in the future!
Look for a leader in its field that has opportunities for you to develop
professionally and a corporate culture that allows you to grow and prosper.
You will spend a great deal of time in the office during your career, so its
vitally important to find a company that you fit and that fits you. Here
are some things you should know about GEICOs culture:
Associatecentered: People make our company, and only the best people can
make a great company. GEICO prides itself on having a careful selection
process when considering individuals to join our team. We provide our
associates with many opportunities for development and advancement.
Customerdriven: GEICOs source of security comes from our customers,
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make has to consider the customer and how to make our products better and
more affordable for them.
High Ethical Standards: To operate with uncompromising integrity. It is
one of our core business principles and says it all. Our reputation is
everything, and how we conduct business will always reflect the highest
ethical standards.
Growthoriented: For any company to be successful, it must grow its
customer base. We target profitable growth as one of the most important
ingredients in our past and to our future success.
Hard Work: We proudly say that when you work for GEICO, you will
probably work as hard as or harder than any other place. It is through
everyones work and dedication that we continue to be a successful company.
We set high standards for performance and base rewards on merit, not tenure.
Expenseconscious: We know that unnecessary expenses will make our
products less affordable and therefore less competitive. At GEICO, you
wont find plush offices, expensive paintings on the walls or fancy carpet on
the floor.
Please describe scholarship programs at your firm.
The GEICO Achievement Award scholarship program annually provides

$50,000 in tuition assistance to deserving college sophomores and juniors.
We award scholarships based on academic success, commitment to ones
campus or community and financial need. The program is offered at select
schools and through partnerships with select student organizations. If you are
interested in learning more about our program, please call our college
recruiter at (301) 986-2802.
Actuaries gain experience by advancing through a series of exams offered by the
Casualty Actuarial Society (CAS). At GEICO, we provide our actuaries with
115 paid study hours per exam, and we will pay for exam fees and review
courses. Actuaries who pass exams may be eligible for raises and bonuses.
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Please describe monetary benefits that you offer.

Our associates work hard and they are rewarded with career opportunities, a
great benefits program, financial incentives and the job stability that only a
successful and growing company can offer. GEICO offers competitive
starting salaries, health, dental and life insurance coverage, and 401(k) and
profit-sharing plans. Our actuaries may be eligible for salary increases and
bonuses based on progressing through the CAS actuary exams. All associates
receive an annual performance and salary review.
In our Washington, D.C. area corporate office, we offer on-site fitness,
medical and dining facilities, GEICO Federal Credit Union, various
commuter programs and discounted METRO tickets, associate sports teams
and clubs, volunteer opportunities through our corporate community citizens
program, discounts on various products and services (computer, flowers, cell
phones, tax services, etc.), and business casual dress.
per week?
40 to 50 hours per week.
Rarely/never.

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Genworth Financial
6620 W. Broad Street
Richmond, VA 23230
Phone: (804) 281-6000
Toll Free: (888) 436-9678
Fax: (804) 662-2414
www.genworth.com
THE STATS
Chairman & CEO: Michael D. (Mike)
Fraizer
$1,221.0 million
LOCATIONS
Operating in 22 countries
EMPLOYMENT CONTACT
Go to employment at
www.genworth.com

Genworth Financials early identification summer internship program is described in
detail on its web site and offers students opportunities to work in their major.
Interested candidates should have a minimum GPA of 3.2 majoring in a businessrelated field, leadership presence and proficiency in MS Office.

Tuition reimbursement is offered up to annual limits for courses leading to an
undergraduate or graduate degree and related eligible expenses.
Please describe any ongoing or other training programs for employees.
Ongoing training programs include The Genworth Development Center, a network of
trainers and organizational development professionals who provide coaching in
addition to creating and delivering classroom and e-learning courses.
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Compensation
Genworths health care programs allow you to choose your own plan.
Medical coverage includes Anthem PPO and Blue Cross-Blue Shield
coverage. Prescription drug coverage is available though Medco, and vision
insurance offers a vision service plan (VSP). Dental coverage is offered
through Genworth EBG-Dentmax, and flexible spending accounts are offered
for health and dependent care. Short-term and long-term disability, paid time
off, 401(k) plans, the Genworth Pension Plan and adoption assistance are also
other monetary perks of working at Genworth.
Diversity
Genworth sponsors four network groups focused on attracting, developing

and retaining diverse associates. These groups include African-American,
Asian-Pacific, Hispanic and womens forums.

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The Hartford Financial Services

Group, Inc.
Hartford Plaza, 690 Asylum Ave.
Hartford, CT 06115-1900
Phone: (860) 547-5000
Fax: (860) 547-2680
www.thehartford.com
LOCATIONS
Operations in the US, Brazil,
England, Ireland & Japan
THE STATS
Chairman and CEO: Ramani Ayer
2005 Firm Revenue Worldwide: $27.1
billion
$2.3 billion
EMPLOYMENT CONTACT
Go to careers at
www.thehartford.com

From a recruitment perspective, candidates who demonstrate that they are well prepared
for the interview usually differentiate themselves from other candidates. Interviewees
should research the company, the opportunity and be prepared to ask questions during your
interview. In addition, candidates should ensure that their resume, cover letter and thankyou note are free of errors.
Please describe your internship program.
Summer internships: www.thehartford.com/actuarial
The undergraduate summer intern program runs from May until August. The
minimum requirements in order to be considered eligible for the summer internship
program are a 3.0 GPA or higher and an academic course of study (major or
concentration) that aligns with the position and the business. The actuarial intern
programs, in both the life and property and casualty businesses, are considered among
the best in the insurance industry. They build an individuals actuarial skills while
simultaneously sharpening communication and leadership skills. Candidates who
desire a career as an actuary and are interested in the intern programs should possess
strong communication and leadership skills as well as have passed a minimum of one
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CAS/SOA exam. The Hartford cannot guarantee full-time placement for

interns; however, it does consider interns a primary source for recruiting
candidates.

The Hartford offers actuarial programs in both the property and casualty and
life companies. They provide 130 hours of study time (per sitting) during work
hours. Other benefits offered as part of our student program include seminars,
study material, dedicated study rooms, competitive base salaries and
challenging rotational assignments, which provide broad exposure to the
companys operations and senior leadership. The objective of The Hartfords
actuarial student program is to develop future business leaders with strong
technical and managerial backgrounds. Hartfords actuarial analysts provide
actuarial support for product pricing, financial reporting, product development,
research, reserving, investments and claims. Their actuaries function as
partners in driving the business. Qualifications include: a bachelors degree in
a financial or quantitative major (i.e.; actuarial or math) with a 3.0 GPA
minimum; proven ability to pass CAS/SOA exams (one exam requirement),
excellent communication and analytical skills, and leadership potential.

Health and welfare benefits at The Hartford include medical, dental, flexible
spending accounts, group life insurance, short-and long-term disability,
employee assistance programs (EAP) and work and life programs. Financial
planning includes an investment and savings plan (401(k) Plan), an employee
stock purchase plan (ESPP), Hartford mutual funds, a retirement plan, a U.S.
savings bond program and a smart 529 program. Other benefits include paid
time off, an adoption program, an annual incentive program and a degree
development program.
Perks at The Hartford include an employee club, employee discounts, an
employee recognition and referral program, fitness center and free parking.

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The Hartford Financial Services Group
Diversity
The Hartford encourages employees to practice these five inclusive behaviors
to accept diversity: 1. Listen carefully to the person speaking until he/she
feels understood; 2. Accept others frame of reference as true for him/her; 3.
Be clear, honest and direct; 4. Build on others thoughts, ideas and feelings;
5. Be bravetake risks and speak up for what you believe in.
The Hartford shows its commitment to diversity and inclusion through

recruitment, talent development, community outreach and comprehensive
benefits programs.
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Hay Group
The Wanamaker Building
100 Penn Square East
Philadelphia, PA 19107-3388
Phone: (215) 861-2000
Fax: (215) 861-2111
www.haygroup.com
LOCATIONS
Operates 86 offices in 47 countries
THE STATS
Chairman: Chris Matthews
than 2,000
EMPLOYMENT CONTACT
www.haygroup.com/ww/careers

There is no one Hay Group person. Hay Group looks for people who are bright and
inquisitive and who will act on their own initiative and enjoy a challenge. They recruit
people who are willing to make courageous decisions substantiated by solid data and
reasoning. While knowledge is good, they look for people who can turn this knowledge
into insight, impacting their clients business and helping them achieve their future goals.
Hay Group looks for committed peoplepeople who are not afraid of rolling their sleeves
up to get a job done and done well. They like diverse peoplethose with different
backgrounds, experience, qualifications and views. Candidates should be insightful,
courageous and committed.
Diversity
Hay Group is a global company where every individual has the opportunity to grow
and succeed without regard to ethnicity, gender, background or orientation. We believe
that diversity widens the range of experience and possibilities for our clients, and we
also believe it makes working together at Hay Group more interesting and exciting.
Interoffice transfers are increasingly common and the top management of Hay Group
represents the geographical as well as functional diversity of the firm.
As a responsible employer, Hay Group monitors the implementation of equal
opportunities principles and take active steps to ensure that all employees are treated
equally and fairly in terms of recruitment, training, promotion, reward and overall career
progression.
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Hewitt Associates LLC

100 Half Day Road
Lincolnshire, IL 60069
Phone: (847) 295-5000
Fax: (847) 295-7634
www.hewitt.com
LOCATIONS
Offices in 35 countries
THE STATS
Chairman & CEO: Russell P. (Russ)
Fradin
$115.9 million
22,000
EMPLOYMENT CONTACT
Go to working here at
www.hewitt.com

For an updated list of recruiting activities, go to Recruiting Events under the
Working Here section at www.hewitt.com.
The only requirements for a candidate at Hewitt Associates are the ability and desire to
grow, develop and adapt to change. Good teamwork skills are also helpful since most
work is done in teams.

The corporate culture encourages all employees to make the world a better place to
workits Hewitts corporate mission.
Interest-free computer loans are offered to employees to purchase a home computer,
printer, modem and/or fax and repay the loan through convenient payroll deductions.
Tuition reimbursement is available for 85 percent of the cost of tuition for approved
courses taken at an accredited institution. The maximum reimbursement is $5,000 per
year.
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Compensation
Medical benefits offered by Hewitt Associates provide a range of choices
depending on your location: a managed deductible plan with a health
reimbursement account, a preferred provider organization (PPO) option, an
exclusive provider organization (EPO), and a health maintenance
organization (HMO) option. All these options include prescription drug
coverage. Hewitt Associates also offer dental and vision care and a health
care spending account. Health care and wellness credits are also available.
Each year from Hewitt, employees receive medical and dental/vision credits
based on elections and wellness credits based on your wellness pledges to
help purchase your health care coverage. Retirement, a savings plan and a
company 401(k) match are also offered to Hewitt employees. Programs to
protect employees income include short-term and long-term disability, life
insurance and accidental death and dismemberment (AD&D) insurance.
Paid time off and holidays are also given to Hewitt employees.
Diversity
Hewitt Associates has a number of diversity outreach partners including the
Diversity Pipeline Alliance, the National Association for African Americans
in Human Resources (NAAAHR), Black Data Processing Associates
(BDPA), the National Black MBA Association (NBMBAA), the Hispanic
Alliance for Career Advancement (HACE), the National Society of Hispanic
MBAs (NSHMBA), Chicago United and the Out & Equal Workplace
Advocates (O&E). The Supplier Diversity Program at Hewitt Associates has
formed alliances with diverse suppliers and organizations consistent with
their business objectives. Black Associates at Hewitt Associates (BAHA)
focuses on professional development via a networking and mentoring forum
for black associates. Membership spans countries and cultures, including
North America, Africa and the Caribbean. PrideAlliance promotes
appreciation and respect for gay, lesbian, bisexual and transgender associates,
ensuring their right to deliver excellence in a comfortable and safe work
environment. Affirmations of gay, lesbian, bisexual and transgender
employees can be viewed on the web site. The Hewitt Asian Diversity
Network (HADN) facilitates professional growth for Asian associates across
all our business functions and locations, and the Latino and Hispanic
Associates (LAHA) offers career networking and development opportunities
for Latino and Hispanic associates, recruiting opportunities and networking
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with Latino/Hispanic groups from other corporations. Women in Leadership

at Hewitt promotes womens professional contributions while creating an
environment that allows women to acknowledge their full potential as
leaders. Working Parents celebrates the professional and personal
development of mothers and fathers via workshops addressing the daily
challenges of working life.
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Highmark Inc.
120 Fifth Avenue Place
Pittsburgh, PA 15222-3099
Phone: (412) 544-7000
Fax: (412) 544-8368
www.highmark.com
LOCATIONS
Operations in:
Western PA, Central PA, & WV
THE STATS
Firm Type: Private (non-for-profit)
Company
Chairman: J. Robert Baum
CEO: Kenneth R. Melani
$341.6 million
EMPLOYMENT CONTACT
Go to Working at Highmark at
www.highmark.com

Candidates can apply to jobs listed on the Highmark web site. The firm notes that
Highmark and its family of companies are committed to the principles of equal
employment opportunity.
Compensation
Please describe other monetary benefits (401(k), investment opportunities, stock

options or purchase, etc.).
Monetary benefits at Highmark include competitive salaries, a complete benefit
program with health, dental and vision care coverage, group life and disability
insurance, a 401(k) savings and investment program, a retirement plan and paid time
off.
Diversity
At Highmark, we believe that our strength is in our people. The synergy of different
skills, talents, potential and backgrounds has made Highmark one of the nations
largest and most successful health insurers. We strive to harness the power of diversity
in the workplace and in the community to help all people live longer, healthier lives.
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Highmark Inc
The Corporate Workforce Initiatives department is dedicated to the

development of business-specific strategies and programming to support
Highmarks goal of building and sustaining an inclusive work environment.
This ensures equal opportunities to enable every employee to realize their full
potential.
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Lincoln Financial Group

Centre Square, West Tower
1500 Market Street Street,
Suite 3900
Philadelphia, PA 19102-2112
www.lfg.com
LOCATIONS
Operations Nationwide
THE STATS
Chairman & CEO: Jon A. Boscia
$831.1 million
approximately 60
EMPLOYMENT CONTACT
Go to careers under about us at
www.lfg.com

Lincoln Financial Groups actuarial development program is designed to be helpful for
actuarial exam success. The work/study program promotes the development of
actuarial, technical, management and leadership skills, as well as promotes rapid
actuarial exam progress. Students in the program begin their careers in a series of twoyear rotations that span a wide variety of business units, functions and locations.
Typically, between two and six new students are hired each year. Preferred majors
include math/actuarial science, statistics or business/economics. Other desired
credentials for recent graduates are one to two SOA exams, summer actuarial
internship experience, and a strong academic record. Actuarial positions in our Fort
Wayne location are primarily focused on financial reporting and valuation while
positions in our Hartford location are primarily focused on product development and
pricing of life and annuity products. Actuarial rotations are also available in
Philadelphia.
Requirements for the Lincoln Financial Group Professional Development Program
include the following criteria: graduating college senior status, minimum of 3.0 GPA,
willingness to relocate, demonstrated leadership ability, strong internship experience,
authorization to work in the U.S. without sponsorship, and emotional intelligence and
maturity.
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Lincoln Financial pays competitive salaries commensurate with exam
progress and prior experience. Raises are given for exams passed between
initial offer and start date.
The summer internship program at LFG provides the opportunity for college
students to learn more about an actuarial career and about LFG and its
actuarial program. It allows LFG to build relationships with high-quality
student interns to meet our future needs for actuarial students. Each summer,
the program has interns working in Fort Wayne and Hartford. In Fort Wayne,
actuarial interns work in financial reporting and risk management. In
Hartford, actuarial interns work in pricing and product development. The
process of identifying summer intern candidates occurs in the late fall through
February time frame. Each students needs and university schedule
determines the starting and ending dates of the internship. Summer interns
receive a salary that reflects years of school completed, actuarial exams
passed and previous summer actuarial experience. Exams passed from the
May sitting will result in a pay increase effective upon notice of successful
passing of exam. Housing allowances or subsidized campus housing is
provided. A series of weekly meetings provide summer interns with a chance
to meet and hear from actuaries from around the company and from various
levels, including senior management. Social activities are also planned.

employees.
Ongoing career development tools offered by LFG include tuition
reimbursement for undergraduate/graduate business education, various
training programs, industry-related courses, internal job postings and a
professional development program that provides additional career
development support for its participants.
Students receive up to 183 hours of company time to study per exam sitting.
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Compensation
LFG offers competitive salary with bonus programs based on business,
personal and department results.
Please describe monetary benefits.
Benefits at LFG include a comprehensive medical, dental and vision/hearing
plan, and they also offer a health care expense account. Paid time off,
vacations, holidays, a savings and profit-sharing plan with company
contributions to 401(K) and an employee retirement plan are available.
Domestic partners also qualify for benefits.
Notable perks include and an on-site fitness center with variety of classes offered
in certain locations, on-site massage therapy in certain locations, comprehensive
periodic physical exams and matching gifts to higher education.
Diversity
LFG has received many awards regarding its diversity efforts. Lincoln
National Corporation ranked in 100 Best Companies for Working Mothers by
Working Mother magazine in September 2005, and also received the honor of
the highest score possible on Corporate Equality Index for the Human Right
Campaign the same month.

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Mercer Human Resource

Consulting LLC
1166 Avenue of the Americas
New York, NY 10036
Phone: (212) 345-7000
Fax: (212) 345-7414
www.mercerhr.com
THE STATS
Firm Type: Wholly owned subsidiary of
Marsh & McLennan Companies, Inc.
Chairman & CEO: M. Michele Burns
than 15,700
LOCATIONS
190 cities & 41 countries &
territories
EMPLOYMENT CONTACT
Joining-Mercer@mercer.com
See joining Mercer at
www.mercerhr.com

A complete list of campus visits can be viewed under Mercer events in the joining
Mercer section of www.mercerhr.us.

Mercer Human Resource Consulting candidates should possess a BA/BS degree in a
relevant field (such as mathematics, statistics, economics, business, finance,
information systems, human resource management or liberal arts), analytical and
mathematical skills, proficiency in Microsoft Office (Excel, Word and PowerPoint),
exceptional interpersonal skills and strong oral and written communication skills,
excellent problem-solving skills and strong attention to detail, the ability to prioritize
and handle multiple tasks, the ability to work independently and collaboratively
Describe your summer internship program.
An internship at Mercer is a paid 10- to 12-week program within one of Mercers key
business segments. Each intern is assigned a mentor to provide support and guidance.
Internships are available in a variety of Mercer locations across the U.S. Learning
opportunities will be given through semimonthly lunch-and-learns with leadership, formal
training activities, job shadowing and service on actual client teams and providing support
to consultants. Internships will also allow socializing and networking through staff BBQs,
sporting events, scavenger hunts, charity events, dinners and farewell outings.
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There are flexible work schedules and a business casual dress code. Mercer
is a firm of people in the people business linked through shared values.
Typically, its a stimulating environment where people are committed,
energized and anxious to be first with new solutions for our clients.
Employees have fun, work hard and find satisfaction in what we do. They
like to share our talents with our communities and to ensure that our personal
interests and our families are always a top priority.
Mercer encourages its employees to continue increasing their professional
knowledge and skills through job-related educational courses and programs.
A tuition assistance program is offered to employees, and provides
reimbursement (up to certain limits) for the cost of tuition and related eligible
expenses, such as books.

Mercer also supports programs for actuaries offering study time, resources and
even financial incentives for passing the required examinations and achieving a
certification or designation. Employees in the actuarial study program are
eligible for paid study time (generally three days per hour of exam, up to 15
days), paid time off on the day of the exam, reimbursement for exam fees and
related study materials, salary increases to compensate employees for growth in
competencies, skills and knowledge and one-time bonus for passing an exam on
the first sitting or for becoming an associate of the Society of Actuaries (ASA),
or enrolled actuary or Fellow of the Society of Actuaries (FSA).
Compensation
There are different types of compensation that are associated with different
job levels. However, all of Mercers reward programs share a common
foundation. Using our Partnering for Success program, Mercer establishes a
clear link between the work employees do and rewards. All employees set
annual performance goals in four categoriesclients, people, process and
financial. Compensation decisions are based on the extent to which
employees achieve those goals and demonstrate the results of their learning
and development activities.
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Mercer Human Resource Consulting Ltd.
Diversity
Mercer offers a diversity scholarship program, which includes an internship

component. The program is designed to attract top minority student scholars
with leadership potential to Mercer as their future employer, because at Mercer,
diversity plays an integral role in its strategic visionand ultimately, our
success. The diversity scholarship program recognizes achievement in
scholastics, leadership potential and initiative among minority students.
Mercer also seeks to make students aware of the potential for a rewarding
career in the consulting industry and to encourage the pursuit of this career path.
The diversity scholarship Program assists recipients with tuition, fees, books,
and on-campus room and board. We have awarded scholarships of up to $5,000
to students across the U.S. Scholarships are awarded to sophomore and junior
students annually and they can be renewed, subject to the students continued
eligibility. Applicants must complete an interview process and secure a
summer internship in order to receive the scholarship award.
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MetLife Inc.
200 Park Ave.
New York, NY 10166-0188
Phone: (212) 578-2211
Toll Free: (800) 638-5433
Fax: (212) 578-3320
www.metlife.com
THE STATS
Chairman & CEO: C. Robert
(Rob) Henrikson
$4.714 billion
LOCATIONS
Operations globally.
EMPLOYMENT CONTACT
See careers at www.metlife.com

Recruiting through presentations, participation in on-campus clubs, professional
organizations and diversity associations, the company is building long-term relationships
with universities and colleges, generating interest in MetLife as a diverse employer of
choice.
Requirements for an entry-level actuarial position with MetLife include a college

degree in mathematics, a GPA of 3.3 or higher and excellent communication and
computer skills.
to hiring?
Credit for at least one actuarial exam and a commitment to attaining fellowship in the
Society of Actuaries or the Casualty Actuarial Society is required for an entry-level
actuarial position.
Describe your summer internship program.
INROADS provides internships at MetLife for high-potential undergraduate students
who are also people of color. Students are sponsored for eight-to 10-week summer
internships, as well as work-study assignments, in which they are evaluated for
continued sponsorship and recruitment into the company. Currently, 52 percent of
INROADS interns become full-time employees.
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MetLife Insurance Company
Compensation
Benefits at MetLife include medical, dental, life and mental health coverage,
disability,401(k), long-term care, an adoption assistance program, domestic
partner benefits, lactation centers, a tuition refund program, fitness programs
and flexible work arrangements.
Diversity
MetLife does a number of things to promoted diversity within the company.

Each year, the company participates in a number of national conferences that
allow for interaction with diverse entry-level and experienced candidates.
Past conferences include the National Urban League, NAACP, National
Black MBA and Rainbow/PUSH-Wall Street Project. Different groups and
divisions were also created at MetLife to ensure diversity. They include
MetLifes Enterprise Diversity Council, Line of Business Diversity
Committees, Local Inclusion Action Teams, MetLifes Affinity Groups,
Multicultural Resources Network (MRN), Professional Women at MetLife
(PWAM), and Gay, Lesbian, Bisexual and Transgendered (GLBT).
Recognitions for diversity efforts include the following: 2006 Best
Companies for Women of Color by Working Mother magazine, Top 50
Companies for Diversity by DiversityInc, Top 100 Companies by Working
Mother magazine, Employer of Choice by the Minority Corporate Counsel
Association (MCCA), Top Ranked Companies in America by the Human
Rights Campaign Foundation and the Top 100 Companies by Hispanic
Magazine.
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Milliman, Inc.
1301 Fifth Avenue, Suite 3800
Seattle, WA 98101
Phone: (206) 624-7940
Fax: (206) 340-1380
www.milliman.com
LOCATIONS
Over 40 offices worldwide
THE STATS
Firm Chairman: Bradley Smith
Firm CEO: Patrick Grannan
2005 Firm Revenue Worldwide: $435
million
No. of Employees Firmwide: 2000+
900+ actuaries and consultants
EMPLOYMENT CONTACT
www.milliman.com

According to Milliman, job requirements and position titles for new hires vary by
office and by type of work.
All our office locations hire actuaries as needed.

Health, employee benefits and pensions, life insurance and financial institutions,
property and casualty insurance, investment consulting.
Does your firm offer summer internships?
Some offices do offer internships during the summer.

Other companies look for good employees. At Milliman, we want exceptional people.
Other companies encourage creative thinking. At Milliman, we want creative thinking
coupled with action. Other companies value people who are smart and hardworking.
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Milliman, Inc.
At Milliman, we want more than that. We want our team members to be

consummate professionals. We want unwavering commitment to our clients.
We want meticulous attention to detail. We want people who know how to
do things right. In a word, we want excellencebecause were not like other
companies.
Since 1947, weve hired the best of the best. Weve built a team of
consultants, actuaries and support staff that is a study of complements-a
group of people with different styles, different strengths and different areas of
expertise working together as a cohesive unit. Our team is an incredible
resource as well as a source of inspiration. Each new hire is a critical part of
this team, because were not simply looking to be a bigger company; were
looking to be a stronger firm.
The firm, together with the actuarial foundation, has established Stuart
Robertson Scholarship Fund, which offers scholarships to students with
talents and interests that could lead to careers in the actuarial profession. For
further information about this scholarship program, please contact the
actuarial foundation.
employees.
Some continuing education and training programs are offered at the local
office level, and some are offered for actuaries and consultants throughout the
firm. These often include training for skills in addition to technical actuarial,
such as presentation skills, public speaking skills, networking, business
development, business writing, etc.

The firm offers its employees a profit-sharing and retirement plan.
per week?
It varies by office and by type of work.
It varies by office and by type of work. In some practices, it varies by season.
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Milliman, Inc.
Diversity
minorities and gay and lesbians.
We are an equal opportunity employer.
Additional Comments
Millimans unique culture creates an atmosphere where smart people do

quality work. With our client-focused approach and unmatched depth and
breadth of expertise, Milliman delivers practical solutions to challenging,
future-oriented business problems. If this culture sounds like the right fit for
you, please contact the Milliman office in the city of your choice.

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Northwestern Mutual
720 East Wisconsin Avenue
Milwaukee,WI 53202
www.nmfn.com
LOCATIONS
Milwaukee, WI (HQ)
THE STATS
CEO: Edward J. Zore
billion
$924 million
approximately 5,000
EMPLOYMENT CONTACT
Ken Latus
E-mail:
kennethlatus@northwesternmutual.com
See careers at www.nmfn.com
Northwestern Mutual recruits annually at the University of Wisconsin, University of

WisconsinMilwaukee, University of Illinois, University of Iowa, University of
Northern Iowa, Purdue University, Drake University and from the company web site
and SOA web site.
grad school?
Actuarial associate.
Do you require or desire undergraduate candidates to have one or more
of the Society of Actuaries or Casualty Actuary Society exams completed
prior to hiring?
Yes, at least one exam required for full-time actuarial associate position.
Since 1967, Northwestern Mutuals internship program has provided over 20,000
students from all over the country an unmatched opportunity to learn more about
themselves, the world of business and the financial services career.
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Northwestern Mutual

employees.
Our actuarial leadership development program provides opportunities for
professional growth and advancement through its exam support, mentoring
and job rotation programs.
Yes.

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Penn Mutual Life Insurance

Company
600 Dresher Road
Horsham, PA 19044
Phone: (215) 956-8352
Fax: (215) 956-8145
www.pennmutual.com
LOCATION
Horsham, PA (HQ)
THE STATS
Chairman & CEO: Robert Chappell
billion
$112 million
approximately 500 in the home
office
EMPLOYMENT CONTACT
Eric Johnson
E-mail: Johnson.Eric@pennmutual.com
See careers at
www.pennmutual.com
Penn Mutual recruits at Penn State University and Temple University and through
recruiters, job postings and web sites.
of grad school?
Actuarial technician; actuarial analyst (title depends on exams and experience, grad
school degree doesnt necessarily matter).
Candidates meet with five to six associates for 45 minutes each. Usually we do a phone
screen interview before extending a home office invitation. We ask interview questions
testing several key areas of competence.
3.0 GPA or higher, at least one actuarial exam passed, potential leader in the company,
strong technical and communication skills.
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Penn Mutual Life Insurance Company

Yes.
We use our intern program as a trial period for full-time employment.
Associates are paid hourly and the rate depends on college year and exams
passed. Range is from $16 per hour to $18 per hour. Interns are asked to do
meaningful work and have a project...presentation to complete at the end of
the summer. Please visit the web site for more information. In terms of the
percentage of interns hired full time, we do not keep official statistics, but it
is probably about 50 percent.

Good home work balance while maintaining professionalism.
We have a formal actuarial mentoring program that allows new associates to
get exposure to someone outside of their area in order to more freely discuss
career issues.

We have a formal actuarial development program that provides support for
exams as well as general career development. Please visit the web site for
more information. In addition, all associates have a chance to participate in
companywide learning program where the topics vary.
employees.
Tuition reimbursement program for related course work.
Yes.

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Penn Mutual Life Insurance Company

We pay market salaries. Starting salary ranges are $52,000 to $58,000. We
have an annual bonus program based on both personal and corporate-wide
objectives. The usual starting bonus rate is 4 percent. Merit increases occur
once a year and are primarily based on performance.
We have a 401(k) program with a generous employer match percentage. We
do not have stock options as we are a mutual company.
On-site fitness center, cafeteria, various sports leagues.
per week?
40 to 50.
Rarely/Never.
Diversity

minorities and gays and lesbians.
We are an equal opportunity employer.
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PricewaterhouseCoopers
300 Madison Avenue
New York, NY 10017
Phone: (646) 471-3000
Fax: (813) 286-6000
www.pwc.com
LOCATIONS
THE STATS
Firm Type: Private Partnership
CEO: Samuel A. DiPiazza Jr.
$21.986 billion
142,162
EMPLOYMENT CONTACT
See careers at www.pwc.com

Summer internships begin with an orientation program, which introduces interns to the
people, clients and procedures of PricewaterhouseCoopers. Then interns will be in an
actuarial-specific training program intended to close the gap between academic
experience and your initial assignments. The training program will include case
studies, practice exercises, communication modules and technology-enabled study to
teach problem-solving skills in business transactions. Once training is finished, interns
join a client engagement team. The internship will include networking, and each intern
will receive guidance from an experienced PricewaterhouseCoopers employee and a
peer mentor who can answer basic, everyday questions.
To apply for an internship, candidates must complete an online career profile and
request an on-campus interview. If they feel youre a potential match, candidates will
be interviewed on campus and then possibly at one of its offices.

At PwC, work culture is inclusive and respectful of individuality and an environment
where you can thrive and grow, both personally and professionally.
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Please describe any ongoing or other training programs for employees..

PricewaterhouseCoopers encourages its employees to take advantage of the
coaching, mentoring and experiences of more senior team members.
PricewaterhouseCoopers will assist client service staff who wish to obtain
professional designation(s) appropriate to their discipline by providing study
support and/or paying for all or a portion of the cost of preparation courses for
professional examinations through the Professional Certification Expenses
program. The Educational Support Plan provides staff with educational support
of up to $5,250 (nontaxable) per calendar year to further their education through
the pursuit of a degree or to improve their skills by pursuing educational courses
directly related to their current position. Through the Matching Gift Program the
PricewaterhouseCoopers Foundation will match your gift ($50 minimum) to
qualified colleges or universities, up to a maximum of $7,500 per fiscal year.

PricewaterhouseCoopers employees take advantage of paid holidays and
vacation time. Health care coverage is flexible, offering insurance through Blue
Cross Blue Shield, Kaiser Permanente and CIGNA. Drug, routine physical
exams and hearing care benefits are available through all the medical plan
options. Vision care coverage is provided automatically when you enroll in a
PwC medical plan option, and the dental plan covers services ranging from
diagnostic and preventive care to orthodontia treatment. Dependent care,
flexible spending accounts, life and accident insurance, accidental death and
dismemberment (AD&D) insurance, 401(k) plans, short- and long-term
disability insurance, business travel accident insurance and adoption assistance
are also available to employees.
There are no standard hours. Work isnt the same from day to day. Hours
beyond client service are also part of PwC life (training, recruiting, office
meetings, social activities, sports teams, community service, travel time, etc.)
Schedules are unpredictable and can change frequently. Deadlines and client
demands can drive long hours at certain points. Longer hours will vary by
person based on client assignments throughout the year. PwC bills clients for
the hours worked. Goals are set based on expected hours worked for clients.
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Diversity
To help diversity efforts, the chief diversity officer is responsible for driving
strategies and initiatives throughout PricewaterhouseCoopers. He provides
ongoing functional accountability for issues surrounding diversity and
work/life.
The New Moms Lactation Program gives access to educational materials and
unlimited pre/post-birth counseling from nationally recognized lactation
specialists. Private mothers rooms are also available in many of its offices.

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Prudential Financial
751 Broad Street
Newark, NJ 07102-3777
Phone: (973) 802-6000
Toll Free: (800) 346-3778
Fax: (973) 802-4479
www.prudential.com
THE STATS
Chairman & CEO: Arthur F.
(Art) Ryan
$3.54 billion
LOCATIONS
Operations in the US, Asia,
Europe & Latin America
EMPLOYMENT CONTACT
www.prudential.com/careers

The actuarial summer internship program is a 10-week program, beginning in late May to
the end of August, offering participants challenging project assignments within an
actuarial department. Business unit placement includes group or individual life insurance,
asset management, international, long-term care, annuities, pensions or investments.
Interns work a minimum of 10 weeks on a full-time basis (37.5 to 40 per week) in paid
positions. While the internship program is based out of New Jersey, there are opportunities
that exist in other parts of the country. Program characteristics include work with Fellows
in the Society of Actuaries or Casualty Actuarial Society and associates in the Actuarial
Leadership Development Program, participation in several professional seminars,
orientations given by senior leaders from major divisions and subsidiaries that describe the
challenges and work of actuaries in their business unit, generous salaries that increase with
passing actuarial exams, free housing at a college facility with other interns, use of shared
vehicle and free parking, fitness centers available in each building and many sponsored
social and recreational activities. If Prudentials actuarial leadership development program
visits your campus, the company encourages you to submit your resume through your
career services office. Otherwise, send your resume, along with a cover letter, to:
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Recruiting Manager, Actuarial Leadership Development Program

213 Washington Street, 7th Floor
Newark, NJ 07102-2992
Or e-mail your resume to: aldp.jobs@prudential.com
Compensation
Prudential recognizes that benefits are an important component of a total

compensation package. The company offers a very comprehensive and
competitive benefits programone that enables employees to select coverage
that makes the most sense for an individual situation. The philosophy behind
its benefits program encompasses three important goals: 1) To provide
comprehensive benefits that offer a choice of options and flexibility in how to
use the programs. 2) To ensure that the program is relevant to the needs of a
diverse employee population. 3) To provide a program that is competitive with
other top tier companies. Most Prudential employees can anticipate a benefits
package that includes health care programs (including medical, dental and
vision), personal protection programs (including life insurance, accident
insurance, disability insurance, long-term care insurance and access to
professional legal assistance through Prudentials LegalCare Program), the
Capital Accumulation Program (including the Prudential Cash Balance Pension
Plan and the Prudential Employee Savings Plan, in which the company
currently matches 100 percent of your before-tax contributions, up to a
maximum of 4 percent of your eligible earnings), flex credit and flexible
spending accounts.
Diversity
Prudentials diversity and work/life balance programs have become a
fundamental element of its philosophy and culture. Honors for its diversity
efforts have been given the following recognitions: Top 100 List-Companies
providing the most opportunities for Hispanics (Hispanic Magazine), Top 100
Employers of Entry-Level College Graduates (The Black Collegian
magazine), Partners for Change Award-National Black MBA Association,
Central NJ Chapter, Top 10 Companies to Work For (WE Magazine), Top 25
Companies for Executive Women (Working Women magazine) and Top 10
Companies for Working Mothers (Working Mother magazine).
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The Segal Group, Inc.

One Park Avenue
New York, NY 10016-5895
Phone: (212) 251-5000
Fax: (212) 251-5290
www.segalco.com
LOCATIONS
Offices Across the US & Canada
THE STATS
Chairman: Howard Fluhr
CEO: Joseph A. (Joe) LoCicero
EMPLOYMENT CONTACT
www.segalco.com/careers/index.html

For a complete list of entry-level opportunities, visit www.segalco.com/careers
entry/index.html.
The Segal Group looks for people who are client-focused, creative thinkers, excellent
communicators, team players, personable and achievement-oriented.

to hiring?
Segal has a competitive exam program that rewards its actuarial employees for
successfully completing exams. The company provides increases in base pay and
bonus payments in accordance with the specific exam(s) passed and credentials earned.

The environment at Segal is a collaborative work environment with a collegial
atmosphere. Employees are on a first-name basis with one another and all work with
open doors. Segal employees accomplish work through the use of teams comprised
of members from various practices and parts of the country. This gives employees the
valuable opportunity to work with and learn from colleagues representing different
disciplines to broaden knowledge, gain skills and support overall professional
development. At Segal, we put emphasis on culture (enjoying the people you work
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The Segal Group
with, having a sense of belonging, and commitment to integrity, colleagues

and the organization), career enrichment (pursuing career paths that offer
challenge, continuous learning and development and provide merit rewards
for the contributions you make) and flexibility (knowing that the organization
cares about employees and is sensitive to the pressures that exist outside the
workplace).
Segal encourages both formal and informal performance feedback, mentoring
and provides both internal and external education and training opportunities
to help achieve professional goals.
The Segal Group offers research and study leave to employees. Available
after you have completed 15 and 25 years of service, a research and study
leave allows you eight weeks of fully-paid time off to learn more about the
field and/or profession or to develop new business ideas. Up to $1,500 of
approved expenses can be reimbursed. The tuition reimbursement plan
offered by Segal will reimburse a portion of the cost of successfully
completed, pre-approved professional courses. Manager-recommended
courses are often reimbursed 100 percent.
Compensation

Benefits at Segal include medical coverage, dental coverage, a health care
reimbursement account, dependent care reimbursement, vacation, holidays,
an actuarial study program, a profit-sharing plan, pension plans, retiree
medical benefits, a life-balance resource and referral program, an employee
assistance program and a life cycle benefits program.

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State Farm Insurance Companies

One State Farm Plaza
Bloomington, IL 61710-0001
Phone: (309) 766-2311
Fax: (309) 766-3621
www.statefarm.com
LOCATIONS
Operations in US & Canada
THE STATS
Firm Chairman & CEO: Edward B.
(Ed) Rust Jr.
EMPLOYMENT CONTACT
See About Us then Career Center
at www.statefarm.com

To view a complete list of recruiting events by state, visit the firms Career Center. online
In addition, be prepared to answer the following questions at your interview:
How have you ensured that you always maintain quality and service, even during
your most busy times?
Discuss a time when you had to deal with major change. How did you respond to this
situation? How did you prepare for the change?
Tell me about a time when you thought out of the box to come up with a creative
solution to a problem. Was your solution effective? Why or why not?
Have you ever worked with a difficult customer? How was the customer being
difficult? How did you respond to the customer? How did the customer respond to
you?
In the past, how have you organized information to ensure that it would be readily
accessible?
Explain how you prepared for this interview.
Tell me about a time when you had a difficult and/or complex problem to solve. How did
you organize the available information? Was your decision/solution effective? How?
How have you ensured you deliver a quality product, even in extremely busy times?
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In your present job, what preventive measures do you take to reduce the
chance of a stressful situation from occurring?
What do you do in your current/previous positions to contribute to the team
environment? Be specific.
What do you know about State Farm Insurance Companies?
State Farm Insurance Companies actuarial internship program, typically held
from May to August, will provide you with an insight into the actuarial
profession. To qualify for an internship, candidates must meet the following
requirements: be majoring in math, actuarial science or statistics; have at least
a 3.2 GPA; possess strong communication skills, analytical skills and
computer skills; and have successful completion of one actuarial exam.
State Farm may offer tuition assistance to actuarial students that qualify.
Tuition assistance may be awarded at the end of the successful completion of
an internship in conjunction with an offer of full-time employment in one of
the actuarial departments following graduation. The funds are used to
reimburse the student for senior year tuition. As an actuarial intern, projects
and responsibilities include researching and making recommendations for
deductible adjustments, commercial auto and school bus rating spreadsheet
analysis, contingency margin analysis, preparing studies analyzing policy
retention, preparing material used to support rate filings, assisting in loss and
premium forecast and structuring rating zone configurations. If you are
interested in our internship program and meet the qualifications, you can
contact your placement/career center.

State Farm offers the following types of scholarships: foundation grants,
doctoral dissertations, company grants, the American Indian College Fund,
the Hispanic scholarship Fund, the National Merit Scholarship, SFCV and
project ignition scholarships.
employees.
State Farm sponsors employee participation in 100 insurance or financial
services education courses, 60 professional designations, 40 information

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technology and systems-specific certification programs, and many in-house

personal development programs and mentoring programs.
at your firm? Bonuses?
State Farms offers competitive starting salary, annual merit review, annual
bonus potential and rewards for individuals whose contributions help the
company achieve business objectives.
State Farm contributes a substantial portion of the health, dental and life
insurance premiums for employees. State Farm offers the following plans to
employees: dental, medical (choice between the State Farm Group Medical Plan
and a health maintenance organization available at most locations), life
insurance, voluntary accidental death and dismemberment coverage, long-term
disability and long-term care. State Farm offers two plans for retirement. Other
monetary benefits include a savings and thrift a 401(k) plan, a retirement plan
(fully funded), credit union and free financial education and counseling.
Perks of working at State Farm include wellness programs, health club
discounts, commuter vanpool, automatic teller machine and postal services.
per week?
Staggered hours are a variation of flextime, including part time, job-sharing,

compressed workweeks, telecommuting and flexible scheduling.
Diversity
We hire, retain, promote, compensate and provide terms, conditions and
privileges of employment solely on the basis of the companies human
resources requirements and each persons qualifications. We have an obligation
to our policyholders to determine realistically our needs for employees and to
select the best qualified available people to handle their insurance business. In
fulfilling our obligations, we will not practice, tolerate, nor condone
discrimination because of age, race, color, religion, sex, national origin, sexual
orientation or disability. All employees must respect the individuality and
dignity of one another and the customers we serve. We comply at all times with
the letter and the spirit of all national, state and local laws pertaining to
employment.
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Towers Perrin
File name:
pp_178_Towers.pdf
page 178
Towers Perrin
One Stanford Plaza
263 Tresser Boulevard.
Stamford, CT 06901
Phone: (203) 326-5400
www.towersperrin.com
LOCATIONS
The firm has offices and business
partner locations in the US,
Canada, Europe, Asia, India, Latin
America, South Africa, Australia
and New Zealand
THE STATS
CEO & Chairman: Mark Mactas
$1,350.9 million
$1,311.6 million
No. of Employees Firmwide: over
5,000 worldwide
EMPLOYMENT CONTACT
careers.towersperrin.com

The firm annually recruits for undergrads at Ivy League schools, public state schools
and private schools. The firm also annually recruits for grad students at MBA
programs. In addition, the firm recruits for employees via job postings and web sites.
Worldwide.
HR Services and Tillinghast.
grad school?
Associates.
We meet over half of our candiates through our campus recruiting process. We
participate in career fairs and presentations, and other targeted club events at campuses
across the country. We review candidates resumes and online applications; from there,
we determine who will be interviewed on campus. Candidates who exhibit strong
competencies during this first-round interview are invited to an office event with other
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candidates. Usually, these events are based on line of business and are
sometimes national in scope; other times they are held either for openings in a
specific office or geographic region. A series of interviews take place during the
interview day, and the candidate also has several opportunities to learn about our
firm through panel discussions and meals with recently-hired associates.
Candidates are provided with their disposition within a day or two of the
interview event. For candidates whom we do not meet via direct campus
activies, we undergo the same resume and application review process, and then
complete the first-round interview via a phone call. Similar to the first round oncampus interview process, for those candidates who fare well after this first
round, they are invited to an office event and the procedure is the same as
detailed above. Therefore, at office events, there is a mixture of candidates who
come to us from our direct campus activities along with various other sources.
We do not have a minimum GPA, as we provide candidates with the ability
to explain their GPAs on their applications. We also do not have specific
degree requirements, but find that many of the candidates have actuarial
science, mathematics, statistics and other quantitative degrees. We look for
evidence of initiative, leadership, strong communication, and interpersonal
and team skills on candidates resumes. Interviews are based on their
educational, employment and extracurricular activities.
No, although if a candidate has a degree in actuarial science, we would expect

that student to have passed an exam.
We offer paid summer internships. These internships provide students with
the opportunity to work alongside consultants and do real work. Each interns
work is assessed at the end of the summer, at which time he or she is told if
a full-time offer will be extended.

We are a firm that values initiative and self-starters. We have a highperformance culture that places priority on results. We also place a high value
on our client relationships.
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Mentoring is formal in the first stages of an employees career through an
assigned buddy system. As employees progress through their careers,
mentoring relationships are still as important but less formal.
We have a generous corporate contribution program with over 30 universities
and, with some of the programs, the donations are designated for scholarships.
We have an extensive actuarial development program that provides support to
all employees who are sitting for actuarial exams. It provides for seminars
and study time, as well as financial rewards for those who pass the exams.
employees.
We provide opportunities for technical and nontechnical training in various
subjects through both classroom and self-study environments.

Please describe monetary benefits that you offer.
We provide a competitive compensation package for entry-level candidates.

Associates up to a certain grade level are paid overtime for working more than
a certain number of hours per week, depending on country; overtime rules vary
by country.
per week?
Employees work 37.5 to 50 hours per week during peak times; occasionally,
hours can be 50 to 60 per week, in which case employees may receive overtime
pay.
Rarely/never.
Please provide any additional comments on workload/hours.
Associates are given overtime protection for a designated period of time
prior to sitting for actuarial exams per the actuarial development program.

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Diversity
minorites, and gays and lesbians.
We are an equal opportunity employer. Women, minorities, and gays and
lesbians are treated fairly in terms of hiring and promotional opportunities.
Additional Comments
We are a premier consulting firm serving 75 percent of the worlds 500 largest
companies and 75 percent of the Fortune 1000 U.S. companies. Working at
Towers Perrin provides employees with exciting opportunities, as our clients
continue to provide us challenges and look to us to partner with them in
providing solutions.
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The Travelers Company, Inc.

385 Washington Street
St. Paul, MN 55702
Phone: (651)310-7911
Fax: (651)310-3386
www.travelers.com
THE STATS
CEO: Martin Hudson
$1.622 billion
LOCATIONS
Operations in the US, Ireland &
Canada
EMPLOYMENT CONTACT
E-mail: careers@travelers.com
www.stpaultravelers.com/careers

Travelers can provide you with the firsthand experience to help you reach your career
goals! Students will have opportunities to learn from professional assignments, develop
technical and business skills, meet and work with managers, develop through workshops
and seminars, work one-on-one with a mentor, participate in social events to meet other
interns, build networking contacts, earn competitive salaries and interview for a full-time
position at Travelers upon graduation when they become interns at St. Paul Travelers.
Various assignments across all business lines are offered including national accounts
pricing, automobile and property pricing, risk management and assisting development and
implementation of new products. Some interns who do not live within a commutable
distance to St. Paul or Hartford may also be eligible for subsidized housing. To be eligible
for an internship, a candidate must meet the following requirements: be a major, minor or
have other background in actuarial science, mathematics, applied mathematics, statistics,
economics, business or engineering; have a cumulative GPA of 3.2 or higher; posses
working knowledge of spreadsheet and word processing software; be involved in
extracurricular activities and have a work availability from mid-May through August (10 to
12 weeks). Resumes will only be accepted from August through January. Interested
candidates should e-mail college@travelers.com.

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Monetary benefits include medical, dental and vision care, flexible health
care spending accounts, life insurance, pension plans, 401(k) savings plans
and an employee assistance program.
Diversity
St. Paul Travelers provides equal employment opportunity to all employees

and applicants for employment free from unlawful discrimination based on
race, color, religion, gender, age, national origin, disability, veteran status,
marital status, sexual orientation or any other status or condition protected by
local, state or federal law.
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UnitedHealth Group
UnitedHealth Group Center
9900 Bren Road East
Minnetonka, MN 55343
Phone: (952) 936-1300
Fax: (952) 936-7430
www.unitedhealthgroup.com
THE STATS
Chairman: Richard T. Burke Sr.
CEO: Stephen J. (Steve) Hemsley
$3.3 billion
LOCATIONS
Operations across the US & in
Europe
EMPLOYMENT CONTACT
www.unitedhealthgroup.com/careers
/index.htm

UnitedHealth Group seeks motivated individuals who are eager to transfer skills and
knowledge gained in the classroom to the business environment.
For a complete list of recruitment events, visit www.unitedhealthgroup.com/careers/

recruit/recruit_events.htm

Flexible work schedules, business casual dress code. UnitedHealth Groups
environment is demanding, challenging and fast-paced. Additionally, due to the
dynamic environment in which UnitedHealth operate, employees jobs are constantly
changing. Some employees like the idea of working for a winning team. Others like
the opportunities for career mobility. Still, others just like helping to make the world
a healthier place. Whatever their reasons, people do stay at UnitedHealth Groupfor
10 years, 15 yearseven longer. That, more than anything else, is a testament to the
strength of the culture.

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UnitedHealth Group

UnitedHealth Group offers a competitive health and well-being benefits
program. The company significantly contributes to the cost of medical,
vision and dental coverage for employees and their dependents. If you are a
full-time employee at a certain income level, you may be eligible for a benefit
credit. Employees are eligible for health and well-being benefits on the first
day of the month following your first day of employment.
UnitedHealth Group also provides retirement and savings benefits to help you
save for your financial future. Employees are also enrolled in a 401(k) savings
plan, which provides a company match after one year of employment. In
addition, employees have an opportunity to purchase discounted shares of
UnitedHealth Group common stock through the employee stock purchase plan.
Diversity
Through training, mentoring programs and emphasis on a team environment,

UnitedHealth strives to give every employee the opportunity to realize his or
her full potential. It not only respects diversity; it believes diverse viewpoints
are assets. UnitedHealth Group is an equal opportunity employer and
employs individuals based on job-related qualifications regardless of race,
religion, sex, national origin, age or other protected characteristics.
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UnumProvident Corporation
1 Fountain Square
Chattanooga, TN 37402
Phone: (423) 294-1011
Fax: (423) 294-3962
www.unum.com
LOCATIONS
30 sales offices across the United
States and home office and field
locations in Chattanooga,
Tennessee; Glendale, California;
Portland, Maine and Worcester,
Massachusetts
THE STATS
Chairman: Jon S. Fossel
CEO: Thomas R. Watjen
$513.6 million
EMPLOYMENT CONTACT
www.unum.com/careers
UnumProvident recruits from colleges across the nation throughout the year at career
fairs and through on-campus interviews. Additionally, the firm offers job openings on
its web site with challenging opportunities to people looking to join an organization
that recognizes and rewards the contributions of its employees. UnumProvident
describes its offices as dynamic work environments, a wide range of career options,
career advancement opportunities, plus the chance to join the world leader in income
protection. More information is available on its web site.

UnumProvident seeks to foster a healthy work environment with an emphasis on clear
communication, participation, integrity and personal growth. UnumProvident Corporation
is committed to an environment that is free from discrimination and harassment. Many of
our positions have a career path where you begin at entry level and progress into advanced
specialties. Our career training and planning centers are committed to helping our
employees develop and advance through opportunities for on-the-job training.

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UNUM Provident

Benefits at UnumProvident include the following: life, health, dental and
vision insurance; a retirement plan; income protection insurance; a 401(k)
plan; business travel accident; asset protection; wellness programs; matching
gifts; employee stock purchase plan; tuition reimbursement; paid time and
holidays off and a reimbursement account.
Diversity
UnumProvident provides equal employment and advancement opportunities
for all employees regardless of a persons race, color, religion, national origin,
age, disability, military status, gender or sexual orientation.
UnumProvident will take affirmative action to implement our equal

employment opportunity policy with regard to women, minorities,
individuals with disabilities, disabled veterans and Vietnam era veterans.
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Watson Wyatt
File name:
pp_190_Watson.pdf
page 190

901 North Glebe Road
Arlington, VA 22203
Phone: (703) 258-8000
Fax: (703) 258-8585
www.watsonwyatt.com
LOCATIONS
Operations worldwide
THE STATS
CEO: John Haley
2005 Total Firm Revenue Worldwide:
$737.4 million
No. of Employees in Retirement
practice: 2,700
EMPLOYMENT CONTACT
Robin Wiley
Phone: (713) 507-1702
Fax: (281) 562-7670
E-mail: robin.wiley@watsonwyatt.com
www.watsonwyatt.com/careers

Watson Wyatt annually recruits for undergrads at various private and public state
schools in the U.S. and Canada, as well as schools in other countries, such as Itam and
Anahauc in Mexico City. The firm also annually recruits for grad students at various
MBA programs in the U.S. and Canada. In addition, it recruits for experienced
employees via job postings, sourcing with its own recruiters, associate referrals and
other firms.
Most locations across the globe.
Retirement, Group & Health Care, Insurance & Financial Services, and Investments.
What are the position titles for new hires coming out of undergrad and grad
school?
Associates.

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Watson Wyatt recruits at over 40 schools in the U.S. and Canada. In the
course of the school year, we hold a variety of events at each school,
depending on the recruiting team and office. These events include career
fairs, company information sessions, resume workshops, employer
roundtables, presenting at actuarial club meetings and interview skills
workshops.
The recruiting process we promote on all campuses and to students who apply
are to:
Apply online at our web site: www.watsonwyatt.com/careers/university.asp
If selected, there are initial interviews that may be on campus or over the
phone.
If selected, the next round would be an office interview at the office the
student is interested in working.
If selected, then an employment offer is made and a start date is determined.
In the interviews, candidates or students will meet with some of our senior
retirement consultants as well as other key office leadership. They will also
get to talk with some of their potential peers, individuals that have been with
the firm two years or less to find out what it is like to work with us.
We are looking for highly talented individuals from all age groups, who not
only meet the academic requirements but can also explain why theyre
interested in building a career with us and demonstrate some of the skills that
our consultants draw upon daily (such as communication, attention to detail,
analytical, problem-solving and decision-making skills).
Specific
requirements include:
Bachelors degree in mathematics, statistics, actuarial science or related
degree.
Mathematical aptitude, solid decision-making capabilities and strong
analytical skills
Ability to work effectively in a team-based environment
Attention to detail and commitment to task
Strong computer skills
Strong communication skills
Ability to pass actuarial exams
GPA of 3.0 or higher
Strong SAT or ACT scores
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We would like to see at least one exam taken and passed for full-time positions;
no exams are necessary for internships.
Interns get real-world experience by getting hands on with the same tasks as
the full-time associates handle. Interns get to work on projects such as
benefits pricing, financial modeling, incentive plan benchmarking or
investment studies. Interns will also assist our full-time consultants in
analyzing data and advising our clients on retirement, group and health care
or compensation issues.
In Retirement, interns will learn to:
Forecast pension fund performance
Participate in investment studies
Remit governmental compliance documents
Valuate post-retirement medical plans
In Group & Health Care, interns will participate in:
Analysis of employee benefits programs
Discrimination testing
Benefits pricing
Data analysis
In Compensation, interns will contribute to:

Financial modeling of compensation plans
Preparing client exhibits
Market analyses
Benchmarking annual incentive plans
Our internships and co-ops (Canada) are paid positions. Just like our
permanent associates, theyll receive benefits such as eligibility to participate
in our national training program and help with professional examsshould
they decide to take them. Compensation ranges from $18 to $25 per hour,
depending on the area, market and city.
Typically, our internships are for the summer and extend from June until midAugust. Our co-ops, which are in our offices in Canada, usually are full time
for the four consecutive months of the work term.

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Qualifications needed to apply for an internship/co-op include a drive to

excel, an aptitude for working in teams and a passion for problem solving
these are the three largest factors contributing to a successful work experience
at Watson Wyatt. Interns/co-ops also need computer skills (especially Excel);
ability to multitask; strong written, verbal and quantitative skills; attention to
detail; and enrollment in a bachelors or masters degree.
Practices in our company that offer internships or co-ops are: Retirement,
Group & Health Care and Compensation practices. Selected offices in
Canada offer co-ops within the retirement practice only.
To apply for an internship/co-op at Watson Wyatt, visit: www.watsonwyatt.com/
careers/university.asp.

Watson Wyatt is known for its welcoming and friendly cultureit is said by
our colleagues that its our people (associates and consultants) who make the
firm an enjoyable place to work. Two words that describe our culture are
collegial and collaborative. We foster a positive and fun place to work while
focusing on keeping our clients happy. Our atmosphere fosters creativity,
thought leadership and innovation, making Watson Wyatt a great place to
work and have a career.

New hires get matched with a more experienced member of their teama
buddy. Through experience, the buddy has learned the answers to the
questions that any new hire may have, and he or she will be happy to show
them the ropes. They are an excellent resource to a new hire.
As associates progress in their profession, they can choose to join the
mentoring program, where they and a senior associate will work together to
further develop the associates problem-solving, critical thinking,
interpersonal and organizational skills.
Our combination of on-the-job skill-building, mentoring and formal courses
starts with a new hire care package and continues until retirement. From our
freshman orientation to our series of practice trainings and professional
seminars, well work together to collect and utilize the building blocks of a
successful career.
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Orientation: All new hires, in their first year, experience the orientation class: a
series of multi-day sessions that will walk you through a mix of technical,
business and team-building activities. Orientation includes modules on career
path, ethics, professionalism, knowledge management, and an introduction to
the vision and philosophy of Watson Wyatt.
Get certified: Watson Wyatt gives associates and consultants all the help they
will need to advance their careers with the most prestigious professional
designations. Watson Wyatt pays for all of the books, fees and most exam
seminars. In addition, associates in our exam program will have the aid of an
exam coach to help balance work and study needs.
Get skilled: Each practice or division will have job-specific training to get
everyone up to speed with all the tools of the trade. In the retirement practice,
for example, associates will delve into retirement plan forecasting, using
PenCost, WyVal, Scrubber, Excel and FastSuite. In the investment consulting
division, theyll learn to analyze pension portfolios with VESTEK and MPI.
employees.
Ongoing career training includes professional development programs, exam
coaching, on-the-job training, and Buddy and mentoring programs, national
trainings and web conferences, client interaction training, statistics and
software instruction, internal continuing education credits, executive coaching,
corporate HR training sessions, sales training and personal development
planning.

Monetary rewards:
Automatic compensation increase in annual base salary of $600 per hour of
exam passed.
$1,500 increase in base salary for completion of Modules 1-5 and first FAP
exam. $900 increase in base salary for completion of Modules 6-8 and
second FAP exam.
Bonus of $600 per hour of exam passed on first attempt; $300 per hour of
exam passed on second attempt.
Bonus of $1,500 upon completion of Modules 1-5 and first FAP exam and
$900 for Modules 6-8 and second FAP exam when passed on the first
attempt. Each reduced by 50 percent if passed on the second attempt.

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Automatic compensation increase in annual base salary of $1,500 upon

completion of ASA and $2,500 upon completion of FSA.
Additional bonus of up to $10,000 on completion of FSA in target time frame,
where target time frame is passing approximately two exams every 18 months.
Study hours support:
Study hour bank granted at 45 hours per hour of exam and 120 hours for
FAP.
May withdraw 15-30 hours of study time per hour of exam for a single session.
Additional bank hours granted after each exam passed, unused hours carried
over for use in future sittings.
Maximum 160 company study hours per session.
Generally, maximum eight company study hours per week (exceptions for
week before exam and for seminars).
Other support:
All textbooks, study notes and exam fees paid by company.
Full reimbursement for approved exam preparation seminars (first $500 for
expenses reimbursed after exam is passed).
Exam coach available to mediate work and study balance.
VEE support includes study time, course fees, and study materials.
Eligibility:
Must pass one exam every 18 months to remain eligible for program benefits.
Eligibility allows for one waiver of a sitting off after completion of three
exams.

Our cash compensation program is part of our total rewards philosophy
designed to attract, retain and motivate top talent as a means of realizing our
goals. To do this we:
Reward business results rather than time spent or efforts made.
Reward associates for competency development and demonstrated
commitment to the companys values.
Reward associate performance in the form of goal achievement and
demonstrated commitment to company values.
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Watson Wyatts cash compensation package consists of two important

components: base salary and annual performance bonus.
Base salary: An associates cumulative experience and competencies
successfully applied to his or her roles and responsibilities and reflected in
his/her market value should determine base salary. Each year, we analyze
labor market trends in our industry to establish an annual salary increase pool.
The associates manager recommends an annual salary increase to position
the individual appropriately in regard to these factors.
Within total cash compensation (base salary + bonus), the U.S. intends to set
base salary levels so that our average base salary is at the market median.
Bonus: Based on company financial performance, the firm establishes a bonus
pool at the end of each fiscal year. Bonus pools are further allocated to regions
and practices based on financial performance relative to achievement of the
firms goals. Through the year-end performance/development process, the
manager measures the associates performance against individual goals and
demonstrated commitment to the companys values to determine the portion of
target bonus the associate may receive. Managers make final bonus
recommendations based on achievement of PDP (performance development
process) goals, support of company values and bonus pool funding level.
Bonus targets are determined by band level. Bonus targets for entry level
associates (assuming a fully funded bonus pool) are 5 percent of base salary.

Watson Wyatt believes its employees deserve a benefits package that works
just as hard as they do. Paid vacation time, investment programs, service
recognition and retirement plans are integral to our collection of outstanding
benefits. Our friendly work atmosphere and extensive benefits package
provide the support needed to meet work and life goals head on.
Our benefits packages in the United States and Canada include:
Paid vacations and holidays
Medical, dental, vision and life insurance
Short- and long-term disability insurance
Pension plan
Savings plan
Maternity leave
Employee stock purchase plan

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Disability and life insurance: For the hard times no one wishes to contemplate,
Watson Wyatt stands by its employees, protecting your family from financial
burdens in the case of your death, severe injury or physical inability to work.
Watson Wyatt provides you with flexible benefit credits to purchase life
insurance of up to 250 percent of your annual salary and accidental death and
dismemberment coverage up to $150,000.
Pension plan: We invite all Watson Wyatt associates to participate in our
generous pension plan. You are 100 percent vested after just five years and
will be able to take advantage of benefits at a young 55 years of age.
Savings plan: Contribute immediately upon employment towards your future
with the help of Watson Wyatt. Watson Wyatt offers flexible investment
options with two matching components: a base match and a Company
performance match.
Employee stock purchase plan (ESPP): Weve made investing in your
company easy with a simple payroll deduction plan. Plus, you are entitled to
a 5 percent associate discount for all Watson Wyatt stock purchases up to the
annual limit of $25,000 per year.
Paid time off (PTO) and holidays: You work hard, so you deserve a vacation
every once in a while. Vacation, sick leave and personal time are combined
into Watson Wyatts PTO program, designed to provide you with greater
flexibility in using your time off. In addition to your PTO, Watson Wyatt
pays you through the six major holidays: New Years Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving and Christmas.

Employee Assistance Program (EAP): Professional counseling for those
experiencing marital difficulties, parenting dilemmas, stress, emotional
disorders or legal concerns.
Various vendor discounts: A program that includes a variety of services to
assist our employees, from personal convenience services to financial and
legal services.
Tuition reimbursement: The company reimburses 80 percent of tuition and
related fees for approved graduate courses, and 100 percent for approved
professional designations taken in any one fiscal year, up to $3,000 per year.
Service Award Program: Formal recognition on your fifth, 10th, 15th, 20th,
25th, 30th and 35th anniversaries with Watson Wyatt.
Chairmans Award: The purpose of the Chairmans Award is to:
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Support the firms business strategy

Recognize associates who have made outstanding contributions to strategy
execution
Foster stock ownership
Awards are based on outstanding contribution to strategy execution,
modeling our core values and living the values of the firm.
100 fully vested shares of Watson Wyatt stock
Limited awards of 200 or 300 shares may also be made
On average, how many hours do professionals work in the office per
week?
45 hours on average, or 40+ per week for full-time people.
Sometimes. Varies by client work and demand.
Please provide any additional comments on workload/hours.
Watson Wyatt believes that satisfied associates are key to accomplishing our
goals for financial growth and client satisfaction. The firm believes in
creating an environment that enables associates to reach their fullest potential
in achieving both their personal and career goals.
At Your Service is a comprehensive suite of work/life programs and vendors

that provides Watson Wyatt associates with resources to better manage their
work/life needs. The services provided through At Your Service can help
you find solutions for the simple and complex. Whether you are interested
in locating elder-care services, checking out current mortgage rates or
getting a discount on the latest DVD, there is an At Your Service vendor
available to help you.
The At Your Service page is organized into four broad categories, or channels,
of associate needs and interests including Work & Life, Health & Wellness,
Investing & Planning, and Shopping & Discounts. Within each channel,
associates can find all of the available resources for that particular need or
interest, providing associates with one central place to manage their work/life
needs.
Other Work/Life Benefits:
Alternative work arrangements
Adoption
Sabbatical program
Tuition reimbursement
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Diversity
minorites, and gays and lesbians.
Watson Wyatt commits to developing a diverse workforce and creating a
positive and empowering environment for all employees. Our goal is to
create a workplace that attracts the most talented associates and enables them
to develop their fullest potential. We believe that a successful company
embodies a diverse yet inclusive culture, where we respect and leverage the
differences we bring to the workplace.
To be a leader in todays highly competitive marketplace, we need a diverse
set of talents and skills. Building a representative workforce is just a start.
We also know that to fully understand and serve our clients diverse needs, we
need to reflect and identify with them. Valued, innovative solutions come
through constructive dialogue among respected colleagues who bring
different perspectivesin business and lifeto client issues.
Additional Comments
For more than 50 years, world-class organizations have partnered with Watson
Wyatt to manage the design, funding and delivery of strategic retirement
programs. Today, we are the retirement consulting firm of choice in our industry.
We provide actuarial services to more of the top-300 pension funds
worldwide than any other consulting firm.
We serve as actuary to the three largest corporate pension plan sponsors in
the U.S., and those relationships have endured for more than 25 years.
Weve grown our market share among Fortune 1000 and Pensions &
Investments 1000 companies during each of the past seven years.
We have the best client retention rate in the industry.
What sets us apart:
Thought leadership and creativity: Known as an innovator in retirement plan
design, Watson Wyatt developed the first pension equity plan in the U.S. We
also developed a total risk budgeting approach for assessing investment and
liability-related risks in a uniform manner. We collaborate with clients to
design defined benefit, defined contribution and retiree health benefit
programs that reinforce your business strategy.
Groundbreaking research: Watson Wyatt leads the industry in retirementrelated research, and has helped shape the debate on demographics and
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related workforce planning issues. Ten years ago, our research on retirement
policy, The Sleeping Giant, predicted the U.S. demographic crisis and its
effect on retirement programs, and we have remained at the forefront of this
issue. Recently, our leading retirement researchers published, The Economic
Implications of Aging Societies, addressing global demographic challenges.
We have conducted the most thorough research to date on the shift from
traditional pensions to hybrid plans and the ramifications for employers and
workers. We were the first to study and advocate for phased retirement
programs, and recent efforts include one of the most in-depth surveys to date
on worker attitudes toward phased retirement.
Commitment to our clients interests: Now more than ever, it is crucial for our
clients to have an advocate when their interests are at stake. For more than two
decades, Watson Wyatt has been at the forefront of U.S. retirement policy
discussions. Two years ago we helped plan sponsors form the Coalition to
Preserve the Defined Benefit System. Today, the Coalition membership is made
up of over 75 plan sponsors representing over 1.5 million workers. Together, we
are advocating for policy that ensures cash balance and other hybrid plan designs
remain a viable retirement security option for workers and employers.
Advanced technologies: We offer the best actuarial systems, consulting tools
and administrative solutions in our industry. Our technology investments put
powerful tools directly in our clients hands. Our tools in conjunction with
our thoughtful consulting solutions combine to deliver efficient results.
Our retirement technology solutions include:

Retirement Management Online is a gateway to key Watson Wyatt research,
data and tools.
Quick Peek Online, for modeling the impact of assumption changes, asset
returns and other key variables on your pension expense and funding
requirements.
Electronic Actuary, for comparing different defined benefit, defined
contribution and retiree medical plan designs in terms of benefit accrual
patterns, employer costs and more.
FAS Assumption Toolbox, for benchmarking accounting assumptions
against a database of Americas largest companies.
QuikValue, for evaluating a complete range of benefit provisions against
those of others in your industry or region, drawing from a database of 1,200
employers across the U.S.
PensionPath, a flexible outsourcing solution for managing the entire life
cycle of pension administration, from new hire to retirement.

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WellPoint, Inc.
120 Monument Circle
Indianapolis, IN 46204
Phone: (317) 488-6000
Fax: (317) 488-6028
www.wellpoint.com
THE STATS
Chairman & CEO: Larry C. Glasscock
$2.464 billion
LOCATIONS
Offices across the US
EMPLOYMENT CONTACT
www.wellpoint.com/careers/default.asp

Summer internships begin in May or June and will support the assigned actuarial group
with related projects and tasks. Multiple opportunities are available in a variety of office
locations including Indiana, Ohio, Wisconsin, Illinois and Missouri. Essential duties will
include, but are not limited to, the following: assist the actuarial team to collect and refine
actuarial data; analyze, develop and validate statistical models and data; update pricing,
valuation and forecasting models; conduct Internet research for competitive analysis; and
prepare documents for audits as necessary. Qualified candidates will be currently
participating in an approved academic course of study for undergraduates in actuarial
science or a related degree program. Other criteria for selection include the following:
preferred majors include actuarial science, mathematics, statistics or other related degree;
excellent communication, analytical and problem-solving skills required; experience
required in the use of Microsoft applications, including Word, Excel and Access; and
demonstrated teamwork and leadership ability as evidenced in extracurricular activities a
plus.
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WellPoint

Flexible work schedules, business casual dress code. Life at WellPoint
involves a partnership with associates, along with values, policies and sound
business strategy, contribute to WellPoints unique culture. WellPoint
purposefully creates an environment where associates are encouraged and
recognized for being innovative, disciplined and socially responsible. The
company brings values, goals and commitments to life by integrating them
into the workplace and recognizing associates who lead by example at work
and in the community.
Tuition assistance is offered$5,000 in tax-free reimbursement each year to
cover the cost of tuition, required fees and textbooks at an accredited institution.

Merit increases are offered to employees. Base pay merit increases are
determined by performance and pay relative to market data. The company offers
an annual incentive plan (AIP). The target incentive opportunity is highly
competitive and ranges from 5 percent to 35 percent of eligible earnings based
on your job level. Actual payouts can be as much as two times the target in a
given year when the company and your work group achieve superior
performance levels.
WellPoint developed a total rewards program that allows flexibility to choice
of plan. Medical, dental and vision coverage are offered to employees. Other
benefits include disability, employee assistance and work/life program,
programs to improve your health and flexible spending accounts. To ensure
employees financial futures, 401(k) plans, employee stock purchase plans,
retiree medical spending accounts, life insurance and long-term disability are
offered through the company. For employee personal needs, paid time off,
holidays, adoption assistance and home/auto insurance are available.

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WellPoint
Diversity
WellPoint delivers on this commitment to diversity by recruiting an associate

base rich in diversity, integrating diversity awareness into associate and
management training, communicating the relevance and importance of
diversity to associates, finding new ways to reach out to diverse markets and
weaving diversity into the companys philanthropic strategies. WellPoints
commitment to a strong and diverse workforce begins with our board of
directors, where four of nine members are women. Their guidance has
strengthened WellPoints commitment to developing and promoting wellqualified leaders and gives a substantial edge in recruiting the finest
professionals in our field. WellPoint also offers diversity training to ensure
that all WellPoint leaders understand the companys commitment to diversity
and utilize the tools designed to assist them in managing and supporting this
commitment in their daily business practices. WellPoint has partnered with
Roosevelt Thomas Consulting & Training (RTCT), the nations leading
consultancy/training organization on the subject of diversity management, to
bring diversity awareness training to its management team.
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ACTUA
CAREE
GUIDE
xxxx
RECRUITING
FIRM
DIRECTORY
Vaults Recruiting Firm Directory section features information from

Vault recruiting firm sponsors.
S. C. International, Ltd.
1315 Butterfield Rd #224
Downers Grove, IL 60515
Phone: 800-543-2553
Fax: (630)-963-3170
www.scinternational.com
LOCATIONS
Downers Grove, IL
MAJOR PRACTICES
Consulting Firms
Pension/Retirement, Benefits
Administration, Health & Welfare,
Life, Employee Benefits,
Property/Casualty, International
Accounting Firms
Third Party Administrators
Financial Institutions
Insurance Companies
EMPLOYMENT CONTACT
Scott Rollins
President
Phone: (630)-963-3033
E-mail: search@scinternational.com
FIRM DESCRIPTION
Formed in 1986, S. C. International,
Ltd. specializes in the recruitment of
Actuaries at all levels for Insurance
Companies, Human Resource,
Consulting Firms and Corporations.
The Company expanded in 1996 to
reflect the increasing needs of the
clients beyond Actuarial both nationally
and internationally into allied areas as
well. The value of S.C. International
lies in our communication and
accessibility. Our relationships provide
opportunities at all levels from
technical to officer level. A job search
is an important and necessary step for
professional growth. Changing
companies and geographic locations
can be very manageable with expertise
and guidance. We play an integral role
in both sourcing personnel and
coordinating the interview process,
from initial conversations to meetings
and final negotiations.
To Best serve our client firms our

recruiting approach can be on either a
Contingency or Retained Search basis
depending on the need to dedicate
manpower.
Whether as a person seeking a career
consultation or a Client firm needing
recruiting assistance please contact us
in complete confidence through the
email of search@scint.com or by
telephone at 630-963-3033.
Vaults Recruiting Firm Directory section features information from Vault recruiting
firm sponsors. For information on listing your firm, contact corporatesales@vault.com
CAREER
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207

n l e y | OLD
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Business outlook

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ACTUA
CAREE
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APPENDIX
Answers to Exam Sample Questions
Further Reading

CAREER
LIBRARY
209
Answers to Exam
Sample Questions
Answers to sample questions for Exam 1/P
1) Solution: D
Let N(C) denote the number of policyholders in classification C. Then
N(Young Female Single) = N(Young Female)-N(Young Female
Married) = N(Young)-N(Young Male)-[N(Young Married)-N(Young
Married Male)] = 3000-1320-(1400-600) = 880.
2) Solution: B
Let Y = positive test result
D = disease is present (and ~D = not D)
Using Bayes theorem:
P[D|Y] =
P[Y|D]P[D]
=
(0.95)(0.01)
= 0.657
P[Y|D]P[D]+ P[Y|~D]P[~D] (0.95)(0.01)+(0.005)(0.99)
3) Solution: E
We are given that R is uniform on the interval (0.04,0.08) and V= 10,000er.
Therefore, the distribution function of V is given by:
F(v) = Pr [V < v] = Pr [10,000er < v] = Pr [R < 1n(v)-1n(10,000)] =
1 s 1n(v)-1n(10,000) dr = 1 r | 1n(v)-1n(10,000) = 25 1n(v)-25 1n (10,000) -1
0.04 0.04
0.04 | 0.04
= 25 [1n (v/10,000) -0.04]

4) Solution: A
Let X and Y be the monthly profits of Company I and Company II,
respectively. We are given that the pdf of X is f. Let us also take g to be the
pdf of Y and take F and G to be the distribution functions corresponding to f
and g. Then G(y) = Pr[Y < y] = P[2X < y] = P[X < y/2] = F(y/2) and g(y) =
G1(y) = d/dy F(y/2) = F(y/2) = f(y/2) .
5) Solution: E
Observe that the bus driver collects 21x$50 = $1,050 for the 21 tickets he
sells. However, he may be required to refund $100 to one passenger if all 21
ticket holders show up. Since passengers show up or do not show up
independently of one another, the probability that all 21 passengers will show
up is (1-0.02)21 = (0.98)21 = 0.65. Therefore, the tour operators expected
revenue is $1,050-($100)(0.65) = $985.
CAREER
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211

Appendix
Answers to sample questions for Exam 2/FM

1) Solution: A
The payment using the amortization method is $1,627.45. The periodic
interest is 0.10($10,000) = $1,000. Thus, deposits into the sinking fund are
$1,627.45-$1,000 = $627.45.
Then, the amount in sinking fund at end of 10 years is $627.45 10|.14 s
Using BA II Plus calculator keystrokes: 2nd FV (to clear registers) 10 N, 14
I/Y, $627.45 PMT, CPT FV +/- $10,000 = yields $2,133.18 (Using BA 35
Solar keystrokes are AC/ON (to clear registers) 10 N 14 %i 627.45 PMT CPT
FV +/-$10,000 =)
2) Solution: D
P = $1,000 (1.095)(1.095)(1.096) = $1,314.13
Q = $1,000 (1.0835)(1.086)(1.0885) = $1,280.82
R = $1,000 (1.095)(1.10)(1.10) = $1,324.95
Thus, R >P>Q.
3) Solution: A
Value of initial perpetuity immediately after the fifth payment (or any other time)
= 100 (1/i) = $100/.08 = $1,250. Exchange for 25-year annuity-immediate
paying X at the end of the first year, with each subsequent payment increasing
by 8 percent, implies $1,250 (value of the perpetuity) must = X (v + 1.08 v2 +
1.082 v3 + 1.0824 v25) (value of 25-year annuity-immediate) = X (1.08-1 + 1.08
(1.08)-2 + 1.082 (1.08)-3 + 1.0824 (1.08)-25) (because the annual effective rate of
interest is 8 percent) = X (1.08-1 +1.08-1 + 1.08-1) = X [25(1.08-1)]. So, $1,250
(1.08) = 25 X or X = 54
4) Solution: A
Equate present values: 100 + 200 vn + 300 v2n = 600 v10
vn=.76
100 + 152 + 173.28 = 425.28. Thus, v10 = 425.28/600 = 0.7088 => i = 3.5 percent
5) Solution: B
Chris equation of value at end of year:
(Value of contributions) .5 P(1+i) + 760 = P* + .5 P (1.06) (Value of returns),
where P = price stock sold for. (*Proceeds received for stock sale at
beginning of year are in noninterest-bearing account per government
regulations.) Thus, Chris yield i = ((1.03) P - 760)/(.5 P).
Joses equation of value at end of year:
(Value of contributions) .5 P(1+j) + 760 + 32 = P* + .5 P (1.06) (Value of
returns). Thus, Joses yield j = ((1.03) P - $792)/(.5 P).
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Appendix
It is given that Chris yield i = twice Joses yield j. So ((1.03) P - $760)/(.5

P) = 2 ((1.03) P - $792)/(.5 P) or P = $824/(1.03) = $800. Thus, Chris yield
i = ((1.03) 800 - 760)/400 = 64/400 = .16 or 16 percent.
Answers to sample questions from Exam M

1) Solution: A
B = {c (400-x) x < 400}
0
x > 400
100 = E (B) = c 400 = cE (x ^ 400)

.
.
= c 400 - c 300 (1-300/300+400)
.
= c (400-300 4/7)
C = 100/228.6 = 0.44
2) Solution: C
www.soa.org/ccm/cms-service/stream/asset/?asset_id=8576040
(page 24, question 27)
3) Solution: E
4) Solution: C
5) Solution: B
Answers to Sample Questions from Exam 4/M

Answers may be found at www.soa.org/ccm/cms-service/stream/
asset/?asset_id=10904097
1) Solution: B (page 2, question 3)
2) Solution: A (page 9, question 25)
3) Solution: E (page 10, question 30)
4) Solution: A (page 21, question 61)
5) Solution: E (page 27, question 77)

CAREER
LIBRARY
213

Go| Pharmacia
to www.vault.com
Workplace culture
Compensation
Hours
Diversity
Hiring process

Recommended Reading
www.beanactuary.org
This site, cosponsored by the CAS and SOA, serves as an excellent
introduction for would-be actuaries looking for a career in the field. It has
many links to a variety of resources across the Internet.
www.soa.org
The homepage of the Society of Actuaries. This extremely valuable site
includes a job board, networking contacts and actuarial exam study guides
and enrollment information.
www.casact.org
The homepage of the Casualty Actuarial Society. This site includes much of
the latest research for actuaries in the casualty and insurance fields. It, too,
includes a job board and networking information, and cross-links heavily
with the SOA site.
www.actuary.org
The American Academy of Actuaries. This group is involved in research and
best-practices for the industry, from pensions and insurance to expanding
fields of actuarial practice. It publishes Contingencies, a journal that keeps
actuaries up to date on the latest thinking in the field.
www.abcdboard.org
The Actuarial Board for Counseling and Discipline. This group serves as the
overseer of the Code of Actuarial Conduct and violations thereof.
www.aerf.org
The Actuarial Foundation. This not-for-profit group helps educate the public
as to what actuaries can do. They sponsor public outreach and educational
efforts, help conduct research into actuarial science and provide a variety of
scholarships.

CAREER
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215

Appendix
www.blackactuaries.org
The International Association of Black Actuaries. This group promotes
African-Americans in the actuarial field.
www.actuarialstandardsboard.org
The Actuarial Standards Board. This group gets into the minutiae of good
practices for actuaries.
www.aspa.org
The American Society of Pension Professionals and Actuaries. This is a
professional group for actuaries in the pension industry. It hosts conferences
and publishes the latest research into pension activities.
www.ccactuaries.org
The Conference of Consulting Actuaries. A great resource for those considering

entering the consulting field. This group holds annual conferences and smaller
gatherings, and provides a lot of networking opportunities.
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