Background Graduating third-year Economics and Public Policy major UChicago Careers in Business Passed exams P/1 and FM/2 Summer 2012: Actuarial Intern at Allstate Financial

Life Actuaries at Allstate Allstate Allstate Financial (Life) Finance Actuarial Valuations and Analysis Modeling Experience Analysis Capital Management and Reinsurance Product Management Asset-Liability Management Allstate Home, Auto, and Agencies (P&C)

Actuarial Valuations and Analysis Purpose Calculate, analyze, and report the value of the company’s annuity and life insurance contracts Reserves Amount of money set aside to pay for future benefits Held as a liability on balance sheet Insurance companies need this to ensure they can fulfill promises to policyholders

Types of insurance products Traditional life Interest sensitive life Deferred annuities Payout annuities Structured settlements

Update of mortality rates Mortality study conducted in 2010 recommended a change to higher mortality assumptions Increased mortality rate assumption in annuity valuation software Reserves decreased

Monte Carlo projection Shrinking block of business in New York 51 participating policyholders Dividends distributed to living policyholders each year As the block shrinks, more important to distribute “fairly”, based on: Face amount of each policy Expected death toll in each year

Process Monte Carlo method Use simulations to estimate expected values and variance 10,000 iterations on all simulations Determined when most of population would be dead Made recommendation on how long it should take for dividends to be released

Other projects Actuarial picnic Mayhem commercial

Main takeaway points You should have flexibility in your technical skills. You must learn to communicate your methodology and results in a variety of contexts. PowerPoint presentations Informal meetings Show off your creativity. Always think about the broader problem you’re solving.