UNIVERSITY OF CONNECTICUT ACTUARIAL SCIENCE PROGRAM 2012-2013 Annual Report July 26, 2013
TABLE OF CONTENTS 1. 2012-2013 Highlights/Statistics....1 1.1 Center of Actuarial Excellence....1 1.2 Staff Changes...1 1.3 Statistics.....1 2. University of Connecticut Actuarial Program...3 2.1. Brief History...3 2.2. Mission...4 2.3. Goals...4 2.4. Course Offerings...4 2.5. Validation by Educational Experience (VEE)...5 2.6 The Graduate Program.5 2.7. Professional Staff...6 3. Student Quality...7 3.1. GPA Expectations...7 3.2. Exam Results...8 3.3 National Awards/Scholarships 4. Employment...9 4.1. Career Fair...9 4.2. The Graduates...10 5. Alumni and Business Community Support...10 5.1. Donations...10 5.2. Endowments...11 5.3. Scholarship Program...12
1. 2012-2013 Highlights and Statistics This document reports on the current status of the University of Connecticut Actuarial Science Program. The following are the highlights of the 2012-2013 academic school year: 1.1. A Society of Actuaries Center of Actuarial Excellence (CAE) In December of 2009, the University of Connecticut Actuarial Science Program was recognized as a Center of Actuarial Excellence (CAE) by the Society of Actuaries. The UConn program was selected on the basis of its degree program in actuarial science; its curriculum for the actuarial exams (P, FM, MFE, MLC and C) and for Validation by Educational Experience (VEE); the quality and quantity of its graduates and its actuarial faculty; its integration with business and industry; and its research and other scholarship. In December of 2010, December 2011, and again in December of 2012, that recognition was formally renewed by the Society of Actuaries. The UConn program is now one of only 24 schools in the world (14 in the United States, 8 in Canada and 2 in Hong Kong) with this distinction. 1.2. Staff Changes Emil Valdez, FSA, PhD has decided to leave the university for another opportunity in academia. Faculty, staff and students alike will miss Emil s professionalism, excellent teaching and research, and his good humor. We all wish him well. 1.3. Additional Program Statistics The actuarial program included approximately 270 undergraduate students, 45 Master s students and 8 Ph.D. candidates. During academic year 2012-2013 the actuarial science program produced one PhD. Milanthi Sarukkali, supervised by Jay Vadiveloo, successfully defended his dissertation on Replicated Stratified Sampling. The program delivered 24 Master s degrees. 42 students graduated with either a Bachelor of Arts or a Bachelor of Science degree in actuarial science. Of the students graduating from the undergraduate program, 83% had passed at least one actuarial examination and, of those, 86% had passed multiple exams. 13 of these students successfully completed 3 or more actuarial exams, and 6 students successfully completed 4 or more actuarial exams. 31% of our BA and BS graduates passed 3 or more actuarial exams. 31 companies attended the actuarial science career fair, from 9 states; -1-
Our students received many summer internships and 20 of our BA and BS graduates accepted full-time actuarial positions before graduating. 19 undergraduate students and 1 graduate student were awarded UConn Actuarial Science Scholarships with an average award of $2,500; Jim Trimble, Director of the Actuarial Science Program, is running for a seat on the Society of Actuaries Board of Directors in August, 2013. Jim is currently serving as Chair of the SOA's Education & Research Section. -2-
2. University of Connecticut Actuarial Science Program The University of Connecticut Actuarial Science Program is one of the oldest and, given its distinction as a recognized Center of Actuarial Excellence, one of the most highly regarded programs in North America. In addition, the program is a major recruiting source for financial service companies in the Northeast and elsewhere. 2.1. Brief History The University of Connecticut Actuarial Science Program (housed within the Department of Mathematics) began in 1976 with the creation of a new course Life Contingencies. Theory of Interest was added shortly thereafter. From the very start, the program grew rapidly. The first majors in Mathematics/Actuarial Science graduated in the spring of 1979. In 1984 a Concentration in Actuarial Science at the Master s level was added to the program. In 2001, the Center for Actuarial Studies (now the Janet and Mark L. Goldenson Center for Actuarial Research) was created to promote student participation in research projects in partnership with leading financial institutions. In 2009, the program was one of the first to be recognized by the Society of Actuaries as a Center of Actuarial Excellence. In 2012-13, the program included approximately 270 undergraduate students, 45 Master s level students, and 8 students working on a doctoral thesis in actuarial science. It is estimated that, since its inception, the program has contributed over 715 baccalaureate and over 425 Master s graduates to the work force. -3-
2.2. Mission The mission of the Actuarial Science Program at the University of Connecticut is to provide students majoring in actuarial science with a firm foundation in the fundamental principles of actuarial science. The Society of Actuaries and its sister organization, the Casualty Actuarial Society, offer the professional designations: Associate (ASA) and Fellow (FSA) of the Society of Actuaries and Associate (ACAS) and Fellow (FCAS) of the Casualty Actuarial Society. The Society of Actuaries also offers the Chartered Enterprise Risk Analyst (CERA) designation. These designations signify that an individual has been properly trained to practice as an actuary and carry substantial prestige around the world. To achieve these designations, an actuarial candidate must pass a series of examinations. In addition, the candidate must satisfy other educational and professional requirements. It takes an actuarial candidate approximately seven years beyond the first examination to achieve Fellowship in these professional organizations. 2.3. Goals The primary goals of the program are: To provide the students with a sound foundation in actuarial science; To prepare them for the examinations administered by the Society of Actuaries and the Casualty Actuarial Society; To prepare them to succeed in the business community; and To provide suitable training for those intending to pursue advanced studies in academia. Since it significantly increases their chances for securing summer internships and full-time employment, actuarial science students are encouraged to: Maintain a GPA of 3.2 or higher; Pass at least one actuarial exam before their junior year and at least two actuarial exams prior to graduating; and Qualify for Validation by Educational Experience (VEE credit) for all three subject areas, i.e. economics, corporate finance, and applied statistics. 2.4. Course Offerings The size of the program allows a wide range of course offerings. Appendix C contains a list of the courses offered to actuarial students in the program. These courses enable students to prepare for the first five actuarial examinations. The extent of these offerings contributes to the recognition as a Center of Actuarial Excellence by the Society of Actuaries and is becoming one of the major reasons prospective students choose the University of Connecticut program. It is a high priority to remain as a Center of Actuarial Excellence. -4-
2.5. Validation by Educational Experience (VEE) In 2004, the Society of Actuaries, in conjunction with the Casualty Actuarial Society, redesigned the examination process to give credit to students who have completed courses in the following subjects at the college or university level: Economics Corporate Finance Applied Statistics To receive credit for these courses, the course must be approved by the Society of Actuaries and the student must pass the course with a B or better. The courses at the University of Connecticut that have been approved by the Society of Actuaries for Validation by Educational Experience (VEE) credit are noted in Appendix D. As noted earlier, students are strongly encouraged to take these courses before graduating. 2.6 The Graduate Program During academic year 2012-2013 the actuarial science program produced one Ph.d. Milanthi Sarukkali, supervised by Jay Vadiveloo, successfully defended his dissertation on Replicated Stratified Sampling. The program also delivered 24 Master s degrees. The program handled 10 applications to join the PhD program with intention to write an actuarial science dissertation, offered admission to 2 and had 1 accept. Therefore we will begin Fall 2013 with 8 PhD students intending to write a dissertation on a topic in actuarial mathematics, at least 2 of whom will complete in the coming year. The program also handled 155 applications for the Master s program, up by 1 from last year and by 12% from two years ago, offering admission to 74. Based on past experience, about 20 to 30 will take up the offer, including 6 who already started in Spring. With returning students, we will begin Fall 2013 with 40 to 50 active students in the Master s program, and a few more still enrolled while preparing for exams. The department provided 6 TA of support to Actuarial Master s students in 2012-2013, all as fill-ins to meet unplanned department needs, with none scheduled at this point for 2013-2014. -5-
2.7. Professional Staff There are six active full-time actuarial faculty in actuarial science: Michael Braunstein, ASA, MAAA Jim Bridgeman, FSA, MAAA, CERA Brian Hartman, ASA, PhD James Trimble, FSA, MAAA, CERA Jay Vadiveloo, 1 FSA, MAAA, PhD Emiliano Valdez, FSA, PhD In addition, there were seven adjuncts that taught actuarial/investment courses during 2012-2013: Bruce Campbell, FSA, MAAA John Dinius, FSA, MAAA Jim Geyer, FSA, MAAA Jim Head, FSA, MAAA Andy Niedzielski, FSA, MAAA Ed Perry, MS Greg Smith, FSA, MAAA Michelle Wahab FSA, MAAA Michelle, our newest adjunct, graduated from UConn s actuarial science program in May, 2010. It was exciting to welcome her back to campus as an adjunct faculty member. Michelle taught probability in the Fall, 2012, and will be teaching Loss Models in Fall, 2013. 1 Jay works full-time for Watson Wyatt Worldwide and oversees the Janet and Mark L. Goldenson Research Center in Actuarial Science. -6-
3. Student Quality/Accomplishment 3.1. GPA Expectation Historically, the program attracts excellent students who are highly motivated and perform well in their classes. Actuarial science is a popular major among incoming freshmen honors students at UConn. To remain in the program, students are expected to maintain a GPA of at least 3.2. 3.2. Exam Results A key measure of the success of the program is the number of actuarial examinations the students have passed before graduating. In 2012-13, of the students graduating with a BA or BS degree, 5 students had passed one exam, 17 students had passed two exams, 7 students had passed three exams, 5 students had passed four exams, and 1 student had passed 5 exams. 31% of our graduates had passed 3 or more exams, which is an excellent achievement that surpasses previous years results. Figure 1 Actuarial Exams Passed By Those Graduating. -7-
3.3 National Awards/Scholarships As further evidence of the high quality of our students, several UConn students were awarded prestigious and highly competitive national actuarial or insurance scholarships in the past academic year. Shujuan Huang was named a James C. Hickman Scholar. In addition, Justin Teal and Micah Todd were awarded Derek Hughes/NAPSLO Educational Foundation scholarships, and Tiffany Daley was awarded an Actuarial Diversity Scholarship by The Actuarial Foundation. -8-
4. Employment Given the excellent reputation of UConn s program as a Center of Actuarial Excellence, it should be expected that program graduates would be in demand for entry-level positions within industry. At the same time, actuarial programs throughout the country are growing, just as our program is, while the economic recovery continues to be slower than hoped. Logically, it follows that demand for our top graduates would be high, but that competition would have an impact on those who had not performed as well. Our statistics clearly support that hypothesis. 20 of the 42 members of the graduating class of 2013 had secured full-time actuarial positions. Some of the others chose to go on to graduate school. Of those who have not yet graduated, many students were offered summer internships which, in many cases, will lead to full-time roles. 4.1. Career Fair Each fall, the Gamma Iota Sigma (GIS) Actuarial Fraternity organizes an Actuarial Science Career Fair. In 2012-13, thirty-one companies, from nine states, visited the campus to participate in that Career Fair and to meet with interested actuarial students about opportunities at their organizations. Following this event and continuing into the spring, many of these organizations conducted on-campus (and off-campus) interviews. As a result of these 250+ interviews, many of the students were offered summer internships or entry level positions in corporate actuarial trainee programs. The following is a list of the thirty-one organizations that participated in the 2012 Actuarial Science Career Fair: Actex Aon-Hewitt BlueCross/BlueShield of Western NY CIGNA Ernst & Young Guardian The Hartford Humana John Hancock Lincoln Financial Group Mercer Milliman Phoenix Life Sun Life Financial Travelers Wellpoint (Anthem) Aetna, Inc. Axa Equitable Buck Consultants Deloitte Consulting Forethought Hannover Life Reassurance Hooker & Holcombe, Inc. ING Liberty Mutual MassMutual MetLife New York Life Prudential Financial Towers Watson United Health Group -9-
4.2. The Graduates Appendix A shows a list of the students who graduated this academic year with a Bachelor of Arts or a Bachelor of Science in actuarial science and a list of the companies at which these graduates have accepted positions. Appendix B shows a list of the students who graduated with a Master s degree in actuarial science. 5. Alumni and Business Community Support One sign of success for the program is the support received from alumni and from the business community. This support helps the program attract high caliber students which not only strengthens the program, but ultimately benefits the business community and the actuarial profession. Corporate Sponsors donated approximately $80,000 of new money for actuarial scholarships and other program support. These dollars are in addition to those already committed by ING and Mass Mutual to pay for the courses: Introduction to Actuarial Science, Loss Models, and Programming for Actuaries. 5.1. Donations The following is a list of the organizations that contributed financially to our program during the 2011-2012 academic year: Actex Actuaries Club of Hartford/Springfield Aetna Cigna Deloitte Guardian Life Insurance The Hartford Liberty Mutual Lincoln Financial Mass Mutual Financial Milliman Prudential Financial Sun Life Swiss Re Towers Watson Travelers -10-
5.2. Endowments The following exhibit shows the March 31, 2013 value of the accounts with the University of Connecticut Foundation: Fund # Fund name Market Value 22511 Actuarial Science Support Fund $78,485 22659 Actuarial Science Presidential Match Scholarship Fund $11,458 26066 Programming for Actuaries & Loss Models Courses $28,576 28032 Actuarial Science Scholarship $71,839 30121 Cigna Actuarial Science Scholarship Fund $108,472 30494 Gordon Aston Actuarial Scholarship $55,877 30973 Richard London Endowment $29,918 30980 MassMutual Endowed Scholarship in Actuarial Science $120,114 30993 The Phoenix Foundation Endowed Scholarship in Act. Sci. $29,531 31064 Charles I. Vinsonhaler Fund $39,902 All Total $574,173-11-
5.3. Scholarship Program Scholarships are awarded to undergraduate actuarial science students entering their sophomore, junior, or senior year who distinguish themselves academically and through strong leadership skills and a commitment to community service. Specific criteria for an Actuarial Science Scholarship include the following: The applicant must be a full-time undergraduate student majoring in actuarial science; and The applicant must have a cumulative GPA of at least 3.6. In 2013, nineteen undergraduate scholarships were awarded. In addition, one scholarship was awarded to a Master s student: The average award was $2,500; The average GPA for the scholarship recipients was 3.9; 2013-2014 UConn Actuarial Scholarship Recipients Undergraduates- listed by anticipated graduation date December, 2013 May, 2015 Xin Yu May, 2014 Sara Chiodi Tiffany Daley Matthew Gentile Tian Ming Sean Reddy Philip Welford Aamir Addona Jonathan Bisschop Steven Bunker Kujtim Hoxha Ashley Leonard Tyler Silber Kathleen Snajder Michael Tessler Kevin Twerago December, 2014 May, 2016 Nicholas DeNardo Graduate Student Megan Gauer Jacqueline Weiss Shujuan Huang -12-
Appendix A Students Graduating in 2012-13 With a BS or BA in Actuarial Science Brian Abrahamsen James Berardinucci Michael Bodenrader Ian Campbell Kimberly Clement Qiang Fu Wesley Ko Kimberly Lirette Jiajun Lu Amish Naik Jonathan Plumb Tyler Raddatz Benjamin Root Justin Teal Micah Todd Kristen Tripp Anneke Velthuizen Erick Weiner Joshua Woodruff Xin Yu Li Zhang Stephanie Aube Matthew Bodenrader Michael Byram Brianna Carlson Colleen Dunion Megan Harris Joshua Leadbeater Patrick Lour David Nace Kimberley Panther Anthony Quarella Erica Reuss Robert Slauson Amelia Thacher Ryan Tongue Sean Trudeau Salvatore Villani Mark Windisch Siyuan Xie Yinuo Zhang Megan Zwick Graduates have accepted positions at the following companies: Aetna The Hartford ING Milliman Consulting Penn Mutual Sun Life Towers Watson CIGNA Hooker & Holcomb Met Life New York Life Strategic Benefit Advisors Swiss Re Travelers -13-
Appendix B Students Graduating in 2012-13 With a Master s in Actuarial Science Christopher Adams David Avery Zhi Cui David Fried Hui Huang Eric Lai Youngwoon Lee Yueyi Mu Christopher Roberts Andrew Tuitt Xiaolong Yang Jingong Zhang Benjamin Allain Narayanan Chidambaram Davitt Driscoll Michael Gold Jeremy Johns Xiaozhong Le Yang Li Ayu Abdul Rahman Stephanie Sollars Timothy Webb Xiao Yi Rong Zhuang -14-
Appendix C Undergraduate Courses Reflecting the multidisciplinary aspect of the actuarial profession, students majoring in actuarial science are either required or encouraged to take courses from the following departments: Accounting (ACCT) 2001 Principles of Financial Accounting 2101 Principles of Managerial Accounting Economics (ECON) 1200 Principles of Economics 1201 Principles of Microeconomics 1202 Principles of Macroeconomics 2201 Intermediate Microeconomics Theory 2202 Intermediate Macroeconomics Theory 2411 Money and Banking Finance (FNCE) 3221 Risk Management and Insurance or 4324 Health insurance 4325 Life Insurance and Retirement Security 4326 Risk Management: Property and Liability Exposure Mathematics (MATH): Preliminary 1131 Calculus I (1151 Honors) 1132 Calculus II (1152 Honors) 2110 Multivariable Calculus (2130 Honors) 2210 Applied Linear Algebra 2410 Elementary Differential Equations (2420 Honors) Mathematics (MATH): Actuarial Science 2194W Pedagogical Seminar 2610 Introduction to Actuarial Science 2620 Financial Mathematics I 3160 Probability 3170 Elementary Stochastic Processes 3550 Programming for Actuaries 3610 Probability Problems (Exam P Preparation) 3615 Financial Mathematics Problems (Exam FM Preparation) 3621 Applied Actuarial Statistics 3630 Actuarial Mathematics I 3631 Actuarial Mathematics II 3632 Loss Models 3634 Actuarial Models 3650 Financial Mathematics II 3660 Advanced Financial Mathematics 3670W Technical Writing for Actuaries Statistics (STAT) 3115 Analysis of Experiments 3375 Introduction to Mathematical Statistics I 3445 Introduction to Mathematical Statistics II 4825 Applied Time Series -15-
Appendix D Validation by Educational Experience (VEE) The following courses have been approved by the Society of Actuaries for (VEE) credit: Economics: Dept: Course #: Principles of Economics ECON 1200 or Principles of Microeconomics ECON 1201 and Principles of Macroeconomics ECON 1202 or Intermediate Microeconomics ECON 2201 and Intermediate Macroeconomics ECON 2202 or Microeconomics I ECON 5201 and Macroeconomics I ECON 5202 Corporate Finance: Dept: Course #: Financial Mathematics II MATH 3650 or Financial Mathematics II MATH 5621 or Business Finance FNCE 3101 Applied Statistical Methods Dept: Course #: Applied Actuarial Statistics MATH 3621 or Econometrics ECON 5311 or Empirical Methods in Economics I ECON 2311 and Applied Time Series STAT 4825 or Analyis of Experiments STAT 3115 and Applied Time Series STAT 4825 or Analysis of Experiments STAT 5315 and Applied Time Series STAT 5825-16-
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