Professional Documents
Culture Documents
Sponsored By:
G V
'
Receive Vault's Finance Job Alerts of top jobs posted on the Vault Finance Job Board
Access to complete Vault message board archives
www.vault.com/finance
Vault has a wealth of information about major employers and jobsearching strategies as well as comments from workers about their
experiences at specific companies.
The Washington Post
A key reference for those who want to know what it takes to get
hired by a law firm and what to expect once they get there.
New York Law Journal
Vault [provides] the skinny on working conditions at all kinds of
companies from current and former employees.
USA Today
CIGNA
File name: pp_ii_cigna.pdf
page ii
ACTUA
CAREE
GUDE
VAULT GUIDE TO
ACTUARIAL
CAREERS
3M | A.T. Kearney | ABN Amro | AOL Time Warner | AT&T | AXA | Abbott Laboratories
| Accenture | Adobe Systems | Advanced Micro Devices | Agilent Technologies | Alcoa
Inc. | Allen & Overy | Allstate | Altria Group | American Airlines | American Electric
Power | American Express | American International Group | American Management
Systems | Apple Computer | Applied Materials | Apria Healthcare Group | AstraZeneca
Automatic Data Processing | BDO Seidman | BP | Bain & Company | Bank One | Bank of
America | Bank of New York | Baxter | Bayer | BMW | Bear Stearns | BearingPoint
BellSouth | Berkshire Hathaway | Bertelsmann | Best Buy | Bloomberg | Boeing | Booz
Allen | Borders | Boston Consulting Group | Bristol-Myers Squibb | Broadview
International| Brown Brothers Harriman | Buck Consultants| CDI Corp.| CIBC World
Markets | CIGNA | CSX Corp| CVS Corporation | Campbell Soup Company| Cap Gemin
Ernst & Young| Capital One | Cargill| | Charles Schwab | ChevronTexaco Corp. | Chiquita
Brands International | Chubb Group | Cisco Systems | Citigroup | Clear Channel | Clifford
Chance LLP | Clorox Company | Coca-Cola Company | Colgate-Palmolive | Comcast
Comerica | Commerce BanCorp | Computer Associates | Computer Sciences
Corporation | ConAgra | Conde Nast | Conseco | Continental Airlines | Corning
Corporate Executive Board | Covington & Burling | Cox Communications | Credit Suisse
First Boston | D.E. Shaw | Davis Polk & Wardwell | Dean & Company | Dell Computer
Deloitte & Touche | Deloitte Consulting | Delphi Corporation | Deutsche Bank | Dewey
Ballantine | DiamondCluster International | Digitas | Dimension Data | Dow Chemical
Dow Jones | Dresdner Kleinwort Wasserstein | Duracell | Dynegy Inc. | EarthLink
Eastman Kodak | Eddie Bauer | Edgar, Dunn & Company | El Paso Corporation
Electronic Data Systems | Eli Lilly | Entergy Corporation | Enterprise Rent-A-Car | Ernst
& Young | Exxon Mobil | FCB Worldwide | Fannie Mae | FedEx Corporation | Federa
Reserve Bank of New York | Fidelity Investments | First Data Corporation | FleetBoston
Financial | Ford Foundation | Ford Motor Company | GE Capital | Gabelli Asset
Management | Gallup Organization | Gannett Company | Gap Inc | Gartner | Gateway
Genentech | General Electric Company | General Mills | General Motors | Genzyme
Georgia-Pacific | GlaxoSmithKline | Goldman Sachs | Goodyear Tire & Rubber | Grant
Thornton LLP | Guardian Life Insurance | HCA | HSBC | Hale and Dorr | Halliburton
Hallmark | Hart InterCivic | Hartford Financial Services Group | Haverstick Consulting
Hearst Corporation | Hertz Corporation | Hewitt Associates | Hewlett-Packard | Home
Depot | Honeywell | Houlihan Lokey Howard & Zukin | Household International | IBM
IKON Office Solutions | ITT Industries | Ingram Industries | Integral | Intel | Internationa
Paper Company | Interpublic Group of Companies | Intuit | Irwin Financial | J. Walter
Thompson | J.C. Penney | J.P. Morgan Chase | Janney Montgomery Scott | Janus
Capital | John Hancock Financial | Johnson & Johnson | Johnson Controls | KLA-Tencor
Corporation | Kaiser Foundation Health Plan | Keane | Kellogg Company | Ketchum
Kimberly-Clark Corporation | King & Spalding | Kinko's | Kraft Foods | Kroger | Kurt
Salmon Associates | L.E.K. Consulting | Latham & Watkins | Lazard | Lehman Brothers
Lockheed Martin | Logica | Lowe's Companies | Lucent Technologies | MBI | MBNA
Manpower | Marakon Associates | Marathon Oil | Marriott | Mars & Company | McCannErickson | McDermott, Will & Emery | McGraw-Hill | McKesson | McKinsey & Company
| Merck & Co. | Merrill Lynch | Metropolitan Life | Micron Technology | Microsoft | Miller
Brewing | Monitor Group | Monsanto | Morgan Stanley | Motorola | NBC | Nestle | Newel
Rubbermaid | Nortel Networks | Northrop Grumman | Northwestern Mutual Financia
Network | Novell | O'Melveny & Myers | Ogilvy & Mather | Oracle | Orrick, Herrington &
Sutcliffe | PA Consulting | PNC Financial Services | PPG Industries | PRTM | PacifiCare
Health Systems | PeopleSoft | PepsiCo | Pfizer
| Pillsbury Winthrop | Pitney
Go| Pharmacia
to www.vault.com
Bowes | Preston Gates & Ellis | PricewaterhouseCoopers | Principal Financial Group
Procter & Gamble Company | Proskauer Rose | Prudential Financial | Prudentia
Securities | Putnam Investments | Qwest Communications | R.R. Donnelley & Sons
Workplace culture
Compensation
Hours
Diversity
Hiring process
ACTUA
CAREE
GUDE
VAULT GUIDE TO
ACTUARIAL
CAREERS
DEREK LOOSVELT
AND THE STAFF OF VAULT
All information in this book is subject to change without notice. Vault makes no claims as to
the accuracy and reliability of the information contained within and disclaims all warranties.
No part of this book may be reproduced or transmitted in any form or by any means,
electronic or mechanical, for any purpose, without the express written permission of Vault
Inc.
Vault, the Vault logo, and the most trusted name in career informationTM are trademarks of
Vault Inc.
For information about permission to reproduce selections from this book, contact Vault Inc.,
150 W. 22nd St., 5th Floor, New York, NY 10011, (212) 366-4212.
Library of Congress CIP Data is available.
ISBN 13: 978-1-58131-495-3
ISBN 10: 1-58131-495-7
Printed in the United States of America
ACKNOWLEDGMENTS
We are extremely grateful to Vaults entire staff for all their help in the editorial,
production and marketing processes. Vault also would like to acknowledge the
support of our investors, clients, employees, family, and friends. Thank you!
page viii
Table of Contents
INTRODUCTION
THE SCOOP
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
45
CAREER
LIBRARY
ix
ON THE JOB
Career Decisions
59
61
Lifestyle
67
Salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
A Word on Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
Other Pros and Cons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
FIRM PROFILES
85
CAREER
LIBRARY
205
APPENDIX
209
CAREER
LIBRARY
xi
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Vault Finance Job Board and more.
CAREER
LIBRARY
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.
CAREER
LIBRARY
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.
CAREER
LIBRARY
ACTUA
CAREE
GUIDE
THE SCOOP
CAREER
LIBRARY
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.
CAREER
LIBRARY
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.
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.
CAREER
LIBRARY
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Vault Finance Job Board and more.
CAREER
LIBRARY
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.
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
10
CAREER
LIBRARY
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.
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Vault Finance Job Board and more.
CAREER
LIBRARY
11
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 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
12
CAREER
LIBRARY
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.
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Vault Finance Job Board and more.
CAREER
LIBRARY
13
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.
14
CAREER
LIBRARY
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.
CAREER
LIBRARY
15
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.
16
CAREER
LIBRARY
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.
CAREER
LIBRARY
17
'
www.vault.com/finance
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
19
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
20
CAREER
LIBRARY
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
battles, and is also invested in a wider variety of vehicles beyond stocks and
CAREER
LIBRARY
21
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.
CAREER
LIBRARY
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
CAREER
LIBRARY
23
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
24
CAREER
LIBRARY
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.
CAREER
LIBRARY
25
26
CAREER
LIBRARY
ACTUA
CAREE
GUIDE
GETTING HIRED
Chapter 3: Where to Start
CAREER
LIBRARY
27
Where to Start
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
29
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.
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
30
CAREER
LIBRARY
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.
CAREER
LIBRARY
31
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
32
CAREER
LIBRARY
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
33
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
34
CAREER
LIBRARY
Where to Start
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
35
Where to Start
Canada
University of Windsor
Whether you decide to concentrate or major in actuarial science, or focus on
it at a school that doesn't offer such specialization, you'll still need a well36
CAREER
LIBRARY
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
37
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
38
CAREER
LIBRARY
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
Simon Fraser University
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
39
United States
40
CAREER
LIBRARY
Canada
Simon Fraser University
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
discussions on advanced actuarial theories, and you'll meet with top actuaries
CAREER
LIBRARY
41
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
CAREER
LIBRARY
CAREER
LIBRARY
43
3M | A.T. Kearney | ABN Amro | AOL Time Warner | AT&T | AXA | Abbott Laboratories
| Accenture | Adobe Systems | Advanced Micro Devices | Agilent Technologies | Alcoa
Inc. | Allen & Overy | Allstate | Altria Group | American Airlines | American Electric
Power | American Express | American International Group | American Management
Systems | Apple Computer | Applied Materials | Apria Healthcare Group | AstraZeneca
Automatic Data Processing | BDO Seidman | BP | Bain & Company | Bank One | Bank of
America | Bank of New York | Baxter | Bayer | BMW | Bear Stearns | BearingPoint
BellSouth | Berkshire Hathaway | Bertelsmann | Best Buy | Bloomberg | Boeing | Booz
Allen | Borders | Boston Consulting Group | Bristol-Myers Squibb | Broadview
International| Brown Brothers Harriman | Buck Consultants| CDI Corp.| CIBC World
Markets | CIGNA | CSX Corp| CVS Corporation | Campbell Soup Company| Cap Gemin
Ernst & Young| Capital One | Cargill| | Charles Schwab | ChevronTexaco Corp. | Chiquita
Brands International | Chubb Group | Cisco Systems | Citigroup | Clear Channel | Clifford
Chance LLP | Clorox Company | Coca-Cola Company | Colgate-Palmolive | Comcast
Comerica | Commerce BanCorp | Computer Associates | Computer Sciences
Corporation | ConAgra | Conde Nast | Conseco | Continental Airlines | Corning
Corporate Executive Board | Covington & Burling | Cox Communications | Credit Suisse
First Boston | D.E. Shaw | Davis Polk & Wardwell | Dean & Company | Dell Computer
Deloitte & Touche | Deloitte Consulting | Delphi Corporation | Deutsche Bank | Dewey
Ballantine | DiamondCluster International | Digitas | Dimension Data | Dow Chemical
Dow Jones | Dresdner Kleinwort Wasserstein | Duracell | Dynegy Inc. | EarthLink
Eastman Kodak | Eddie Bauer | Edgar, Dunn & Company | El Paso Corporation
Electronic Data Systems | Eli Lilly | Entergy Corporation | Enterprise Rent-A-Car | Ernst
& Young | Exxon Mobil | FCB Worldwide | Fannie Mae | FedEx Corporation | Federa
Reserve Bank of New York | Fidelity Investments | First Data Corporation | FleetBoston
Financial | Ford Foundation | Ford Motor Company | GE Capital | Gabelli Asset
Management | Gallup Organization | Gannett Company | Gap Inc | Gartner | Gateway
Genentech | General Electric Company | General Mills | General Motors | Genzyme
Georgia-Pacific | GlaxoSmithKline | Goldman Sachs | Goodyear Tire & Rubber | Grant
Thornton LLP | Guardian Life Insurance | HCA | HSBC | Hale and Dorr | Halliburton
Hallmark | Hart InterCivic | Hartford Financial Services Group | Haverstick Consulting
Hearst Corporation | Hertz Corporation | Hewitt Associates | Hewlett-Packard | Home
Depot | Honeywell | Houlihan Lokey Howard & Zukin | Household International | IBM
IKON Office Solutions | ITT Industries | Ingram Industries | Integral | Intel | Internationa
Paper Company | Interpublic Group of Companies | Intuit | Irwin Financial | J. Walter
Thompson | J.C. Penney | J.P. Morgan Chase | Janney Montgomery Scott | Janus
Capital | John Hancock Financial | Johnson & Johnson | Johnson Controls | KLA-Tencor
Corporation | Kaiser Foundation Health Plan | Keane | Kellogg Company | Ketchum
Kimberly-Clark Corporation | King & Spalding | Kinko's | Kraft Foods | Kroger | Kurt
Salmon Associates | L.E.K. Consulting | Latham & Watkins | Lazard | Lehman Brothers
Lockheed Martin | Logica | Lowe's Companies | Lucent Technologies | MBI | MBNA
Manpower | Marakon Associates | Marathon Oil | Marriott | Mars & Company | McCannErickson | McDermott, Will & Emery | McGraw-Hill | McKesson | McKinsey & Company
| Merck & Co. | Merrill Lynch | Metropolitan Life | Micron Technology | Microsoft | Miller
Brewing | Monitor Group | Monsanto | Morgan Stanley | Motorola | NBC | Nestle | Newel
Rubbermaid | Nortel Networks | Northrop Grumman | Northwestern Mutual Financia
Network | Novell | O'Melveny & Myers | Ogilvy & Mather | Oracle | Orrick, Herrington &
Sutcliffe | PA Consulting | PNC Financial Services | PPG Industries | PRTM | PacifiCare
Health Systems | PeopleSoft | PepsiCo | Pfizer
| Pillsbury Winthrop | Pitney
Go| Pharmacia
to www.vault.com
Bowes | Preston Gates & Ellis | PricewaterhouseCoopers | Principal Financial Group
Procter & Gamble Company | Proskauer Rose | Prudential Financial | Prudentia
Securities | Putnam Investments | Qwest Communications | R.R. Donnelley & Sons
Workplace culture
Compensation
Hours
Diversity
Hiring process
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.
Each
CAREER
LIBRARY
45
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]
46
CAREER
LIBRARY
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,
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
47
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.
48
CAREER
LIBRARY
Portfolio
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
(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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
49
(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.
50
CAREER
LIBRARY
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.
CAREER
LIBRARY
51
(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.
52
CAREER
LIBRARY
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.
CAREER
LIBRARY
53
Number of Policies
32
26
12
Total
84
CAREER
LIBRARY
(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
CAREER
LIBRARY
55
56
CAREER
LIBRARY
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.
CAREER
LIBRARY
57
'
www.vault.com/finance
ACTUA
CAREE
GUIDE
ON THE JOB
Chapter 6: Career Decisions
CAREER
LIBRARY
59
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.
CAREER
LIBRARY
61
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.
62
CAREER
LIBRARY
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.
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
what I was doing while I was trying to pass the tests. Its more reviewing
CAREER
LIBRARY
63
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.
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.
64
CAREER
LIBRARY
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.
CAREER
LIBRARY
65
actuaries can play a leadership role as comptrollers and even chief financial
officers.
66
CAREER
LIBRARY
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
CAREER
LIBRARY
67
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
68
CAREER
LIBRARY
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.
The recipient will also be expected, though not outright required, to take a
CAREER
LIBRARY
69
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.
Pros
70
CAREER
LIBRARY
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.
CAREER
LIBRARY
71
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
decades.
CAREER
LIBRARY
73
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.
CAREER
LIBRARY
CAREER
LIBRARY
75
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.
76
CAREER
LIBRARY
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.
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
77
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
78
CAREER
LIBRARY
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.
CAREER
LIBRARY
79
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.
CAREER
LIBRARY
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.
CAREER
LIBRARY
81
82
CAREER
LIBRARY
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.
CAREER
LIBRARY
83
'
www.vault.com/finance
ACTUA
FIRM
PROFI
ACTUARIAL
FIRM
PROFILES
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
CAREER
LIBRARY
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.
CAREER
LIBRARY
87
Diversity
88
CAREER
LIBRARY
Aetna
151 Farmington Avenue
Hartford, CT 01656
Phone: (860) 273-0123
www.aetna.com
LOCATIONS
Hartford, CT (HQ)
Bluebell, PA
Middletown, CT
THE STATS
Firm Type: Public Company
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
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
89
90
CAREER
LIBRARY
We are
CAREER
LIBRARY
91
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.
CAREER
LIBRARY
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:
CAREER
LIBRARY
93
THE STATS
LOCATIONS
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
CAREER
LIBRARY
CAREER
LIBRARY
95
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.
96
CAREER
LIBRARY
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
Firm Type: Public Company
Chairman: Edward M. Liddy
CEO: Thomas J. Wilson II
2006 Firm Revenue Worldwide:
$35.8 billion
2006 Firm Net Income Worldwide:
$4.99 billion
No. of Employees Firmwide: 38,300
EMPLOYMENT CONTACT
See careers at www.allstate.com
CAREER
LIBRARY
97
Diversity
Please describe any diversity hiring efforts in regards to women.
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
98
CAREER
LIBRARY
(2003 to 2005) and a Top Company for Executive Women by the National
Association of Female Executives (2000 to 2001, 2005 and 2006).
Please describe any diversity hiring efforts in regards to minorities.
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.
CAREER
LIBRARY
99
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
No. of Employees Firmwide: 46,000
LOCATIONS
500 offices in more than
120 countries
EMPLOYMENT CONTACT
www.aon.com/about/careers.jsp
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.
What are some of the requirements for jobs?
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.
100
CAREER
LIBRARY
CAREER
LIBRARY
101
Diversity
Please describe any diversity hiring efforts in regards to women.
Aon offers generous maternity leave to its women employees.
Please describe any diversity hiring efforts in regards to minorities.
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.
102
CAREER
LIBRARY
LOCATION
Little Rock, AR (HQ)
THE STATS
Firm Type: Private Company
Chairman: Hayes McClerkin
CEO: Robert Shoptaw
No. of Offices Worldwide: 1
No. of Employees Firmwide: 3,000
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
CAREER
LIBRARY
103
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.
Please describe other monetary benefits.
401(k) matching available, online investment choices.
Please describe other perks.
Company gym, flexible work schedules.
104
CAREER
LIBRARY
Rarely.
CAREER
LIBRARY
105
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
Firm Type: Public Company
Chairman: Henri de Castries
CEO: Christopher M. (Kip) Condron
2005 Firm Net Income Worldwide:
$1.07 billion
No. of Employees Firmwide: 11,800
EMPLOYMENT CONTACT
See career opportunities at
www.axaonline.com.
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.
106
CAREER
LIBRARY
CAREER
LIBRARY
107
LOCATIONS
Boston, MA (HQ)
Six offices Statewide
THE STATS
Firm Type: Private Company
Chairman: William C. Van Faasen
CEO: Cleve Killingsworth
2005 Firm Revenue Worldwide:
$5 billion
2005 Firm Net Income Worldwide:
$265 million
No. of Employees Firmwide: 3,900
EMPLOYMENT CONTACT
Laura Horlitz
Phone: (617) 246-3426
Email: laura.j.horlitz@bcbsma.com
www.bluecrossma.com/careers
What are the position titles for new hires coming out of undergrad? Out
of grad school?
Actuarial analyst, financial analyst, health data analyst.
Please describe the hiring process at your firm.
Phone interview, full day of in-house interviews with leaders and colleagues.
Interviews ask for specific examples of accomplishments.
What are some of the requirements for jobs?
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.
108
CAREER
LIBRARY
CAREER
LIBRARY
109
Diversity
110
CAREER
LIBRARY
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.
CAREER
LIBRARY
111
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
No. of Employees Firmwide: 55,000
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
CAREER
LIBRARY
Compensation
Please describe other monetary benefits.
CAREER
LIBRARY
113
LOCATIONS
120 offices in 29 countries
THE STATS
Firm Type: Public Company
Chairman & CEO: John D. Finnegan
2006 Firm Revenue Worldwide: $12
billion
2006 Firm Net Income Worldwide:
$2.5 billion
No. of Employees Firmwide: 10,800
EMPLOYMENT CONTACT
See careers at www.chubb.com
114
CAREER
LIBRARY
Compensation
Please describe other monetary benefits.
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
CAREER
LIBRARY
115
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
Firm Type: Public Company
CEO &Chairman: H. Edward Hanway
2005 Firm Revenue Worldwide:
$16.7 Billion
2005 Firm Net Income Worldwide:
$1.6 Billion
No. of Employees Firmwide: 28,000
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.
Please describe the hiring process at your firm.
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.
CAREER
LIBRARY
117
118
CAREER
LIBRARY
Diversity
Please describe any diversity hiring efforts in regards to women.
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.
CAREER
LIBRARY
119
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.
120
CAREER
LIBRARY
LOCATIONS
Operations in the US, Canada,
Europe, Asia-Pacific Region &
Argentina
THE STATS
Firm Type: Public Company
Chairman & CEO: Steven W.
Lilienthal
2005 Firm Net Income Worldwide:
$290 million
No. of Employees Firmwide: 10,100
EMPLOYMENT CONTACT
Go to careers at www.cna.com
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.
122
CAREER
LIBRARY
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.
CAREER
LIBRARY
123
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
Firm Type: Public Company
Chairman: R. Glenn Hilliard
CEO: Mr. Claude James Prieur
2005 Firm Revenue Worldwide:
$4,326,500
2005 Firm Net Income Worldwide:
$324.9 million
No. of Employees Firmwide: 4,000
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.
124
CAREER
LIBRARY
LOCATIONS
98 US offices
THE STATS
Firm Type: Private Company
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
No. of Employees Firmwide: 37,118
Deloitte Consulting LLP is a subsidiary
of Deloitte & Touche USA LLP; US
Member Firm of Deloitte Touche
Tohmatsu.
EMPLOYMENT CONTACT
careers.deloitte.com
CAREER
LIBRARY
125
126
CAREER
LIBRARY
CAREER
LIBRARY
127
Diversity
Please describe any diversity hiring efforts in regards to women.
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).
128
CAREER
LIBRARY
Additional Comments
CAREER
LIBRARY
129
THE STATS
Firm Type: Private Company
Chairman & CEO:
James S. (Jim) Turley
No. of Employees Firmwide:
114,000
LOCATIONS
700 offices in 140 countries
EMPLOYMENT CONTACT
See careers at www.ey.com
CAREER
LIBRARY
technology and security risk services, or tax practices for an internship or fulltime position.
CAREER
LIBRARY
131
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.
132
CAREER
LIBRARY
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
No. of Total Employees Firmwide:
18,000
EMPLOYMENT CONTACT
Go to career opportunities at
www.farmers.com
CAREER
LIBRARY
133
Compensation
Please describe other monetary benefits.
134
CAREER
LIBRARY
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)
No. of Employees Firmwide: 20,000
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.
CAREER
LIBRARY
135
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.
Please describe the hiring process at your firm.
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.
What are some of the requirements for jobs?
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
136
CAREER
LIBRARY
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,
and without them we would not be a company! Therefore, every decision we
CAREER
LIBRARY
137
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.
138
CAREER
LIBRARY
Rarely/never.
CAREER
LIBRARY
139
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
Firm Type: Public Company
Chairman & CEO: Michael D. (Mike)
Fraizer
2005 Firm Net Income Worldwide:
$1,221.0 million
No. of Employees Firmwide: 6,900
LOCATIONS
Operating in 22 countries
EMPLOYMENT CONTACT
Go to employment at
www.genworth.com
140
CAREER
LIBRARY
Compensation
Please describe other monetary benefits.
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
CAREER
LIBRARY
141
LOCATIONS
Operations in the US, Brazil,
England, Ireland & Japan
THE STATS
Firm Type: Public Company
Chairman and CEO: Ramani Ayer
2005 Firm Revenue Worldwide: $27.1
billion
2005 Firm Net Income Worldwide:
$2.3 billion
No. of Employees Firmwide: 30,000
EMPLOYMENT CONTACT
Go to careers at
www.thehartford.com
142
CAREER
LIBRARY
CAREER
LIBRARY
143
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.
144
CAREER
LIBRARY
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
Firm Type: Private Company
Chairman: Chris Matthews
No. of Employees Firmwide: more
than 2,000
EMPLOYMENT CONTACT
www.haygroup.com/ww/careers
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.
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
145
LOCATIONS
Offices in 35 countries
THE STATS
Firm Type: Public Company
Chairman & CEO: Russell P. (Russ)
Fradin
2006 Firm Net Income Worldwide:
$115.9 million
No. of Total Employees Firmwide:
22,000
EMPLOYMENT CONTACT
Go to working here at
www.hewitt.com
CAREER
LIBRARY
Compensation
Please describe other monetary benefits.
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
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
147
148
CAREER
LIBRARY
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
2005 Firm Net Income Worldwide:
$341.6 million
No. of Employees Firmwide: 12,000
EMPLOYMENT CONTACT
Go to Working at Highmark at
www.highmark.com
Compensation
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.
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
149
150
CAREER
LIBRARY
LOCATIONS
Operations Nationwide
THE STATS
Firm Type: Public Company
Chairman & CEO: Jon A. Boscia
2005 Firm Net Income Worldwide:
$831.1 million
No. of Employees Firmwide: 5,259
No. of Actuarial Employees Firmwide:
approximately 60
EMPLOYMENT CONTACT
Go to careers under about us at
www.lfg.com
CAREER
LIBRARY
151
152
CAREER
LIBRARY
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.
Please describe other perks.
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.
CAREER
LIBRARY
153
THE STATS
Firm Type: Wholly owned subsidiary of
Marsh & McLennan Companies, Inc.
Chairman & CEO: M. Michele Burns
No. of Employees Firmwide: more
than 15,700
LOCATIONS
190 cities & 41 countries &
territories
EMPLOYMENT CONTACT
Joining-Mercer@mercer.com
See joining Mercer at
www.mercerhr.com
CAREER
LIBRARY
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.
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
155
Diversity
156
CAREER
LIBRARY
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
Firm Type: Public Company
Chairman & CEO: C. Robert
(Rob) Henrikson
2005 Firm Net Income Worldwide:
$4.714 billion
No. of Employees Firmwide: 65,500
LOCATIONS
Operations globally.
EMPLOYMENT CONTACT
See careers at www.metlife.com
CAREER
LIBRARY
157
Compensation
Please describe monetary benefits.
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
158
CAREER
LIBRARY
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 Type: Private Company
Firm Chairman: Bradley Smith
Firm CEO: Patrick Grannan
2005 Firm Revenue Worldwide: $435
million
No. of Employees Firmwide: 2000+
No. of Actuarial Employees Firmwide:
900+ actuaries and consultants
EMPLOYMENT CONTACT
www.milliman.com
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.
CAREER
LIBRARY
159
160
CAREER
LIBRARY
Diversity
Please describe any diversity hiring efforts in regards to women,
minorities and gay and lesbians.
We are an equal opportunity employer.
Additional Comments
CAREER
LIBRARY
161
Northwestern Mutual
720 East Wisconsin Avenue
Milwaukee,WI 53202
www.nmfn.com
LOCATIONS
Milwaukee, WI (HQ)
THE STATS
Firm Type: Private Company
CEO: Edward J. Zore
2005 Firm Revenue Worldwide: $18.4
billion
2005 Firm Net Income Worldwide:
$924 million
No. of Employees Firmwide:
approximately 5,000
EMPLOYMENT CONTACT
Ken Latus
E-mail:
kennethlatus@northwesternmutual.com
See careers at www.nmfn.com
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.
Please comment on your summer internship.
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.
162
CAREER
LIBRARY
Yes.
CAREER
LIBRARY
163
LOCATION
Horsham, PA (HQ)
THE STATS
Firm Type: Private Company
Chairman & CEO: Robert Chappell
2005 Firm Revenue Worldwide: $1.2
billion
2005 Firm Net Income Worldwide:
$112 million
No. of Employees Firmwide:
approximately 500 in the home
office
EMPLOYMENT CONTACT
Eric Johnson
E-mail: Johnson.Eric@pennmutual.com
See careers at
www.pennmutual.com
What are the position titles for new hires coming out of undergrad? Out
of grad school?
Actuarial technician; actuarial analyst (title depends on exams and experience, grad
school degree doesnt necessarily matter).
Please describe the hiring process at your firm.
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.
What are some of the requirements for jobs?
3.0 GPA or higher, at least one actuarial exam passed, potential leader in the company,
strong technical and communication skills.
164
CAREER
LIBRARY
CAREER
LIBRARY
165
Diversity
Please describe any diversity hiring efforts in regards to women,
minorities and gays and lesbians.
166
CAREER
LIBRARY
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.
2005 Firm Net Income Worldwide:
$21.986 billion
No. of Employees Firmwide:
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.
CAREER
LIBRARY
167
168
CAREER
LIBRARY
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.
CAREER
LIBRARY
169
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
Firm Type: Public Company
Chairman & CEO: Arthur F.
(Art) Ryan
2005 Firm Net Income Worldwide:
$3.54 billion
No. of Employees Firmwide: 38,853
LOCATIONS
Operations in the US, Asia,
Europe & Latin America
EMPLOYMENT CONTACT
www.prudential.com/careers
170
CAREER
LIBRARY
Compensation
Please describe other monetary benefits.
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).
Visit the Vault Finance Career Channel at www.vault.com/finance with
insider firm profiles, message boards, the Finance Job Board and more.
CAREER
LIBRARY
171
LOCATIONS
Offices Across the US & Canada
THE STATS
Firm Type: Private Company
Chairman: Howard Fluhr
CEO: Joseph A. (Joe) LoCicero
EMPLOYMENT CONTACT
www.segalco.com/careers/index.html
CAREER
LIBRARY
Compensation
Please describe monetary benefits.
CAREER
LIBRARY
173
LOCATIONS
Operations in US & Canada
THE STATS
Firm Type: Private Company
Firm Chairman & CEO: Edward B.
(Ed) Rust Jr.
No. of Employees Firmwide: 79,200
EMPLOYMENT CONTACT
See About Us then Career Center
at www.statefarm.com
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?
174
CAREER
LIBRARY
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?
Please comment on your summer internship.
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.
CAREER
LIBRARY
175
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.
176
CAREER
LIBRARY
CAREER
LIBRARY
177
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
Firm Type: Private Company
CEO & Chairman: Mark Mactas
2005 Firm Revenue Worldwide:
$1,350.9 million
2005 Firm Net Income Worldwide:
$1,311.6 million
No. of Employees Firmwide: over
5,000 worldwide
EMPLOYMENT CONTACT
careers.towersperrin.com
CAREER
LIBRARY
179
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.
What are some of the requirements for jobs?
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.
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?
No, although if a candidate has a degree in actuarial science, we would expect
that student to have passed an exam.
CAREER
LIBRARY
CAREER
LIBRARY
181
Diversity
Please describe any diversity hiring efforts in regards to women,
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.
182
CAREER
LIBRARY
THE STATS
Firm Type: Public Company
CEO: Martin Hudson
2005 Firm Revenue Worldwide:
$1.622 billion
No. of Employees Firmwide: 32,000
LOCATIONS
Operations in the US, Ireland &
Canada
EMPLOYMENT CONTACT
E-mail: careers@travelers.com
www.stpaultravelers.com/careers
CAREER
LIBRARY
183
Diversity
184
CAREER
LIBRARY
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
Firm Type: Public Company
Chairman: Richard T. Burke Sr.
CEO: Stephen J. (Steve) Hemsley
2005 Firm Net Income Worldwide:
$3.3 billion
No. of Employees Firmwide: 55,000
LOCATIONS
Operations across the US & in
Europe
EMPLOYMENT CONTACT
www.unitedhealthgroup.com/careers
/index.htm
CAREER
LIBRARY
185
Diversity
186
CAREER
LIBRARY
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
Firm Type: Public Company
No. of Employees Firmwide: 11,300
Chairman: Jon S. Fossel
CEO: Thomas R. Watjen
2005 Firm Net Income Worldwide:
$513.6 million
EMPLOYMENT CONTACT
www.unum.com/careers
CAREER
LIBRARY
187
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.
188
CAREER
LIBRARY
CAREER
LIBRARY
189
Watson Wyatt
File name:
pp_190_Watson.pdf
page 190
LOCATIONS
Operations worldwide
THE STATS
Firm Type: Private Company
CEO: John Haley
2005 Total Firm Revenue Worldwide:
$737.4 million
No. of Employees Firmwide: 6,000
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
CAREER
LIBRARY
191
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
192
CAREER
LIBRARY
CAREER
LIBRARY
193
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.
194
CAREER
LIBRARY
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.
CAREER
LIBRARY
195
What are the starting salaries for the various entry-level positions at
your firm? Bonuses? How does salary/bonus increase per year?
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.
196
CAREER
LIBRARY
CAREER
LIBRARY
197
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.
Please describe other perks.
CAREER
LIBRARY
CAREER
LIBRARY
199
Diversity
Please describe any diversity hiring efforts in regards to women,
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.
200
CAREER
LIBRARY
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.
CAREER
LIBRARY
201
WellPoint, Inc.
120 Monument Circle
Indianapolis, IN 46204
Phone: (317) 488-6000
Fax: (317) 488-6028
www.wellpoint.com
THE STATS
Firm Type: Public Company
Chairman & CEO: Larry C. Glasscock
2005 Firm Net Income Worldwide:
$2.464 billion
No. of Employees Firmwide: 42,000
LOCATIONS
Offices across the US
EMPLOYMENT CONTACT
www.wellpoint.com/careers/default.asp
202
CAREER
LIBRARY
CAREER
LIBRARY
203
Diversity
204
CAREER
LIBRARY
ACTUA
CAREE
GUIDE
xxxx
RECRUITING
FIRM
DIRECTORY
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.
Vaults Recruiting Firm Directory section features information from Vault recruiting
firm sponsors. For information on listing your firm, contact corporatesales@vault.com
CAREER
LIBRARY
207
G V
'
www.vault.com/finance
ACTUA
CAREE
GUIDE
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
CAREER
LIBRARY
211
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).
212
CAREER
LIBRARY
CAREER
LIBRARY
213
3M | A.T. Kearney | ABN Amro | AOL Time Warner | AT&T | AXA | Abbott Laboratories
| Accenture | Adobe Systems | Advanced Micro Devices | Agilent Technologies | Alcoa
Inc. | Allen & Overy | Allstate | Altria Group | American Airlines | American Electric
Power | American Express | American International Group | American Management
Systems | Apple Computer | Applied Materials | Apria Healthcare Group | AstraZeneca
Automatic Data Processing | BDO Seidman | BP | Bain & Company | Bank One | Bank of
America | Bank of New York | Baxter | Bayer | BMW | Bear Stearns | BearingPoint
BellSouth | Berkshire Hathaway | Bertelsmann | Best Buy | Bloomberg | Boeing | Booz
Allen | Borders | Boston Consulting Group | Bristol-Myers Squibb | Broadview
International| Brown Brothers Harriman | Buck Consultants| CDI Corp.| CIBC World
Markets | CIGNA | CSX Corp| CVS Corporation | Campbell Soup Company| Cap Gemin
Ernst & Young| Capital One | Cargill| | Charles Schwab | ChevronTexaco Corp. | Chiquita
Brands International | Chubb Group | Cisco Systems | Citigroup | Clear Channel | Clifford
Chance LLP | Clorox Company | Coca-Cola Company | Colgate-Palmolive | Comcast
Comerica | Commerce BanCorp | Computer Associates | Computer Sciences
Corporation | ConAgra | Conde Nast | Conseco | Continental Airlines | Corning
Corporate Executive Board | Covington & Burling | Cox Communications | Credit Suisse
First Boston | D.E. Shaw | Davis Polk & Wardwell | Dean & Company | Dell Computer
Deloitte & Touche | Deloitte Consulting | Delphi Corporation | Deutsche Bank | Dewey
Ballantine | DiamondCluster International | Digitas | Dimension Data | Dow Chemical
Dow Jones | Dresdner Kleinwort Wasserstein | Duracell | Dynegy Inc. | EarthLink
Eastman Kodak | Eddie Bauer | Edgar, Dunn & Company | El Paso Corporation
Electronic Data Systems | Eli Lilly | Entergy Corporation | Enterprise Rent-A-Car | Ernst
& Young | Exxon Mobil | FCB Worldwide | Fannie Mae | FedEx Corporation | Federa
Reserve Bank of New York | Fidelity Investments | First Data Corporation | FleetBoston
Financial | Ford Foundation | Ford Motor Company | GE Capital | Gabelli Asset
Management | Gallup Organization | Gannett Company | Gap Inc | Gartner | Gateway
Genentech | General Electric Company | General Mills | General Motors | Genzyme
Georgia-Pacific | GlaxoSmithKline | Goldman Sachs | Goodyear Tire & Rubber | Grant
Thornton LLP | Guardian Life Insurance | HCA | HSBC | Hale and Dorr | Halliburton
Hallmark | Hart InterCivic | Hartford Financial Services Group | Haverstick Consulting
Hearst Corporation | Hertz Corporation | Hewitt Associates | Hewlett-Packard | Home
Depot | Honeywell | Houlihan Lokey Howard & Zukin | Household International | IBM
IKON Office Solutions | ITT Industries | Ingram Industries | Integral | Intel | Internationa
Paper Company | Interpublic Group of Companies | Intuit | Irwin Financial | J. Walter
Thompson | J.C. Penney | J.P. Morgan Chase | Janney Montgomery Scott | Janus
Capital | John Hancock Financial | Johnson & Johnson | Johnson Controls | KLA-Tencor
Corporation | Kaiser Foundation Health Plan | Keane | Kellogg Company | Ketchum
Kimberly-Clark Corporation | King & Spalding | Kinko's | Kraft Foods | Kroger | Kurt
Salmon Associates | L.E.K. Consulting | Latham & Watkins | Lazard | Lehman Brothers
Lockheed Martin | Logica | Lowe's Companies | Lucent Technologies | MBI | MBNA
Manpower | Marakon Associates | Marathon Oil | Marriott | Mars & Company | McCannErickson | McDermott, Will & Emery | McGraw-Hill | McKesson | McKinsey & Company
| Merck & Co. | Merrill Lynch | Metropolitan Life | Micron Technology | Microsoft | Miller
Brewing | Monitor Group | Monsanto | Morgan Stanley | Motorola | NBC | Nestle | Newel
Rubbermaid | Nortel Networks | Northrop Grumman | Northwestern Mutual Financia
Network | Novell | O'Melveny & Myers | Ogilvy & Mather | Oracle | Orrick, Herrington &
Sutcliffe | PA Consulting | PNC Financial Services | PPG Industries | PRTM | PacifiCare
Health Systems | PeopleSoft | PepsiCo | Pfizer
| Pillsbury Winthrop | Pitney
Go| Pharmacia
to www.vault.com
Bowes | Preston Gates & Ellis | PricewaterhouseCoopers | Principal Financial Group
Procter & Gamble Company | Proskauer Rose | Prudential Financial | Prudentia
Securities | Putnam Investments | Qwest Communications | R.R. Donnelley & Sons
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
LIBRARY
215
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
216
CAREER
LIBRARY