ACTUARIAL SCIENCE - University of Kent

The UK’s European university

Undergraduatestudy

ACTUARIALSCIENCE ANDFINANCIALMATHEMATICSCanterbury

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ACADEMIC EXCELLENCEAND INSPIRATIONAL TEACHING

The University of Kent isa highly rated university,ranked in the top 20 inThe Guardian UniversityGuide 2015. All of ourschools produce world-leading research and Kentis rated as internationallyexcellent, leading the wayin many areas of study.

World-leading researchResearch at Kent is rated asinternationally excellent andacademics within our Schoolare at the forefront of their fields.In the most recent assessmentof research quality across UKuniversities, 65% of our statisticsand operational research and45% of our applied mathematicsresearch were rated ‘world-leading’or ‘internationally excellent’.

Teaching excellenceThe University of Kent is one ofa limited number of universitiesin the UK to teach actuarial science.Actuaries evaluate and managefinancial risks, particularly in thefinancial services industry. Theyform a small, yet well respected,influential and relatively well-paidprofession. If you are good atmathematics and are curious aboutfinancial matters, you should enjoystudying actuarial science.

All of the compulsory actuarialscience modules are taught byqualified actuaries with many years’practical experience in consultancyor the insurance industry.

Our Financial Mathematics degreecombines mathematical rigour witha practical approach to the skillsand techniques used in finance.

Most of the teaching is by lecturesand examples classes. You can goto regular supervised classes whereyou can get help and advice onthe way you approach problems.For further help, you can consultindividual lecturers during theiroffice hours. We also make fulluse of email and the virtual learningenvironment MOODLE. Moduleswhich involve programming orworking with computer softwarepackages usually have practicalsessions associated with them.

Our school is friendly andsupportive and we make a pointof trying to get to know our studentson a one-to-one basis.

A global outlookKent is known as the UK’s Europeanuniversity because of its stronglinks with top-ranking continentalEuropean institutions. Ourinternational reputation attracts ahigh proportion of students fromoverseas; in 2013/14, 27% of ourstudents came from countriesoutside the UK and we havestudents from 149 nationalitiesrepresented on campus. In addition,38% of our research and academicstaff are from outside the UK,creating a cosmopolitan atmosphereand a global learning environment.

The international environment of theSchool of Mathematics, Statistics& Actuarial Science gives you the

chance to look at the subject froma wide range of perspectives.Many of our staff speak a secondlanguage or undertake fieldworkabroad.

Professional exemptionFor students who wish to qualify asactuaries, recognition of our degreeby the Actuarial profession is veryimportant. Our actuarial scienceprogrammes are fully accreditedby the UK Actuarial profession.Our BSc in Actuarial Science givesyou the chance to gain exemptionsfrom eight of the Core Technicalsubjects (CT1 to CT8) of theprofessional examinations set bythe UK Actuarial profession, andprovides you with a firm foundationfor the later subjects. If you do wellenough in your degree to obtain thefull set of exemptions available, youcould reduce your time qualifying asan actuary by three years or more.

International recognitionThe British actuarial qualifications –Fellowship of the Institute ofActuaries (FIA) or Fellowship ofthe Faculty of Actuaries (FFA) – arehighly valued throughout the worldand so are ideal if you are an

Actuarial Science and Financial Mathematics

DID YOU KNOW?According to The GuardianUniversity Guide 2015, 85%of Mathematics students atKent were satisfied with thequality of their course.

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(formerly Ernst & Young); GoldmanSachs; RSA; Deutsche Bank andTravelers insurance.

Actuarial students get practicalexperience of working withPROPHET, the market leadingactuarial software package, whichis used by commercial companiesworldwide for profit testing, valuationand model office work. Thissoftware package is providedby SunGard, a global leader inproviding software solutions forfinancial services.

Invicta Actuarial SocietyThe Invicta Actuarial Society is aregional actuarial society organisedby Kent students and academicstaff. Meetings on campus areattended by practising and visiting

actuaries who present currentresearch and business problemsand provide valuable contactbetween students and employers.

A successful futureAs well as providing a first-rateacademic experience, we wantyou to be able to face the demandsof a tough economic environment.During your study, you developkey transferable skills consideredessential for a successful career.

For more information on the careershelp we provide at Kent, see p8 orour Employability webpage atwww.kent.ac.uk/employability

international student or want to workin another country. Nearly 2,000actuaries with British qualificationswork abroad.

Industry experienceYou may choose to spend anadditional year working on aplacement with an industrial orbusiness organisation, either in theUK or abroad. This gives you theopportunity to put your academicskills into practice and get somepaid work experience. It also givesyou an idea of your career optionsand greatly enhances your CV.Prior experience of working inindustry is always popular withemployers and some Kent studentsreturn to work full-time for theirplacement company. Recentplacements have included EY

www.kent.ac.uk/smsas

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DID YOU KNOW?Kent has a cosmopolitancommunity withstudents representing149 nationalities.

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SUPERB STUDENT EXPERIENCE

Our campus atCanterbury providesa stunning location foryour studies and offersfirst-class academicand leisure facilities.The campus benefits froma multicultural learningenvironment and is withineasy reach of both Londonand mainland Europe.

Excellent resourcesThe School of Mathematics,Statistics & Actuarial Sciencehas excellent teaching resources,with first-rate equipment andan integrated audio-visual systemin our classrooms to help providestimulating lectures. We havededicated computing facilitieswithin the School, in addition to thegeneral University IT provision.

Diverse environmentOur students come from a varietyof backgrounds. There is alwaysa number of mature students withwork experience, as well as anincreasing number of studentsfrom overseas. This mix meansyou not only learn from yourlecturers, but also from theexperiences of your peers.

Beautiful green campusOur campus is set in 300 acres ofparkland and has plenty of greenand tranquil spaces, both lawnsand wooded areas. It is set ona hill with a view overlooking thecity and Canterbury Cathedral.

For entertainment, the campushas its own cinema, theatre, and astudent nightclub. It has a reputationfor being a very friendly university

with a cosmopolitan environment.There are many restaurants, cafésand bars on campus, as well as asports centre and gym.

Everything you need on campusis within walking distance, includinga general store, an off-licence,a bookshop, a bank, a medicalcentre and a pharmacy. Fromcampus, it’s a 25-minute walkor a short bus-ride into town.

Attractive locationCanterbury is a lovely city withmedieval buildings, lively barsand atmospheric pubs, as wellas a wide range of shops. Theattractive coastal town of Whitstableis close by and there are sandybeaches further down the coast.London is under an hour away byhigh-speed train.


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What sort of things do you doin your spare time?I am more active in societies thisyear; the Malaysian Society heldan event that involved performingactivities reflecting our cultureand I took part in a dance. Asa mathematics student you don’toften get a chance to perform likethis in front of a crowd, so it wasa chance to do something different.

What kind of career do youhope to follow when you leave,and why?It is my dream to be an actuarybecause there are many differentfields you can go into: pensions,insurance, investment banking,risk management… but it’s a verycompetitive field. A good thingabout the degree at Kent is thatit offers you a chance to doa placement year and work ina company between your secondand third year.

I got a summer internship withSantander, working in the riskdepartment. I would like to workin Britain because the actuarialindustry is more establishedhere and you get more hands-onexperience. Later, I hope to returnto Malaysia to work.

What advice would you give toother students coming to Kent?I would say don’t procrastinate overyour revision! Enjoy the first year,ease yourself into university life,find your feet and make friends…it’s important to make friends withthe right people because they area positive influence in your studies.

Christopher Ju LeongLow is in his third year,studying for a BSc inActuarial Science.

What attracted you to studyingat Kent?The Actuarial Science programmeat the University of Kent is one ofthe best in the country because itoffers eight exemptions from theprofessional papers. Kent has ahuge campus, a vibrant studentcommunity and excellent facilities.

How is your course going?I enjoy solving problems anddealing with numbers. In thefirst year, the modules were verynumerical, very analytical, whichI enjoy. I like applying mathematicsto solve a problem.

How would you describe yourlecturers?They are very friendly andapproachable and have office hourswhen you can go and ask them howto solve a problem. The lecturershave different teaching techniques.The lecturers at Kent are mostlyqualified actuaries, so they includetheir own practical experiences intheir teaching, which is very useful.

What do you think about thelevel of support in your studies?The lecturers are supportive andhave revision classes towardsthe exam period and go throughexercises with us. The VALUEProgramme offers extra helptowards exams, too.

Which modules have youenjoyed the most, and why?In my first year I really enjoyedFinancial Mathematics, becauseit involves a lot of numerical andanalytical thinking. You have tolook at a situation and think how toapproach that problem and comeup with formulas to solve it. Forexample, if premiums are paidevery month, quarterly or half-yearlyyou have to work out cost formulasfrom the numbers, which I enjoydoing. In the second year, I enjoyedContingencies, which is similar toFinancial Mathematics but is moreof a survival model.

How would you describe yourfellow students?They are friendly and supportive.There are a lot of internationalstudents here, and it’s good toget to know people from aroundthe world. It was my first time awayfrom home and at first it was quitechallenging, but with friendlystudents around it made it easierto cope with the new lifestyle.

What are the facilities like oncampus?One of the main reasons I choseKent was because of the facilities.I enjoy playing football; there arethree football pitches here andthe gym facilities are much moreaffordable than in London. TheUniversity has refurbished theequipment in the gym, so it’s evenbetter now. I also like the library,which has a café so, if you wantto take a break or get somethingto eat, you don’t even have to leavethe building.

STUDENT PROFILE

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A SUCCESSFUL FUTURE

Kent equips you withessential skills to give youa competitive advantagewhen it comes to gettinga job and the Universityis consistently in the top20 for graduate startingsalaries. Six months aftergraduation in 2013, lessthan 6% of Kent graduateswere without a job or afurther study opportunity

Good career prospectsThe UK actuarial profession is smallbut influential and well rewarded.Our actuarial graduates havefound work in insurance companiesand consultancy practices, theGovernment Actuary’s Department,the London Stock Exchangeand other areas of financialmanagement, or have goneon to further study. Graduates inFinancial Mathematics have foundemployment in banking, insurance,equity and commodity trading.

All of the School of Mathematics,Statistics & Actuarial Science three-year undergraduate programmes,except Mathematics with SecondaryEducation (QTS), offer the chanceof a one-year placement betweenthe second and final year of study.

This Placement Year is also knownas a Year in Industry. Among theadvantages of undertaking aplacement year are that you gainrelevant work experience; it’s achance to try a career and to earna salary and you may be offereda graduate job at the end of your

placement, and an actuarialplacement, in a relevant area, maycount towards the work experiencerequired for Actuarial professionqualifications.

Gain transferable skillsThrough your studies, you acquirecommunication, time-managementand planning skills, the ability towork in a team and independently,and learn how to present informationclearly and concisely.

Careers adviceThe Careers and EmployabilityService can give you advice onhow to choose your future career,how to apply for jobs, how to writea good CV and how to performwell in interviews and aptitudetests. It also provides up-to-date

information on graduateopportunities before andafter you graduate.

Further informationFor more information on the careershelp we provide at Kent, see ourEmployability webpage atwww.kent.ac.uk/employability


“This course has given methe skills to tackle real-worldproblems and work wellwithin a team, which I believehas provided me with a solidfoundation on which I canbuild a career.”

Krishan DhanjeeFinancial Mathematics


How did your degree course laythe foundations for your chosencareer path?It provided a solid technicalfoundation for my chosen careerpath and it encompassed most ofthe foundational knowledge usedin daily actuarial work: valuation,pricing, reserving and so on. Andprofessional exemptions make youstand out from other graduates.It also polished my interpersonalskills, such as communication, teamworking, problem solving and timemanagement, all of which arecrucial in the workplace.

What are your future plans?After gaining my MSc, I hope to geta consulting role in an actuarial firm,and strive to achieve my dream ofbecoming a professional actuary.

Do you have any othermemories of Kent that youwould like to share with us?The International Developmentteam hold events for internationalstudents, such as celebrations forChinese New Year and parties forinternational students who stayat the University during holidays,which is always fun.

Finally, what advice would yougive to someone thinking ofcoming to Kent?Kent is a nice place to live andstudy. The high quality teachingstandards and close links withindustry build a bridge betweenacademic excellence and practicalapplications. I recommend Kentas the place where you can startyour dream.

Vikram Joshi studiedActuarial Science at Kentand graduated in 2012.He is now working forAXA Insurance in London.

Why did you choose to studyat Kent? I was attracted by the Universityand the campus. Out of a veryfew universities that teach ActuarialScience, only Kent offered theopportunity of eight professionalexemptions. Also, being inCanterbury allowed me to live awayfrom home for three years, whichwas an amazing experience.

What attracted you to thecourse?The opportunity to obtain so manyprofessional exemptions. I wantedto be an actuary, so I knew thiscourse would be perfect to helpme achieve that goal.

What was your degree like? It was intense but enjoyable. I hadto make sure I stayed on top ofeverything, especially in the secondand third year, where the subjectsbecame more challenging.

How did your degree lay thefoundations for your chosencareer path?Studying actuarial science gave mea strong foundation in the conceptsof the profession, which I believe setme apart from other candidates whohad studied straight maths.

How do the skills you gained atKent help you in your presentcareer?I learnt how to discipline myselfwhen it comes to exams, alongsidebalancing a social life. These areuseful skills in the workplace, whereyou have deadlines and need tofocus on the task at hand.

How did your career progressafter graduation?After graduation I enjoyed thesummer, then I concentrated onjob applications, alongside workingpart-time at Tesco (I believe a part-time job, no matter what itis, is crucial). My supermarketjob allowed me to build manycompetencies for interviews. Afterthree months of rejections I finallygot an offer from AXA – and hereI am as an Actuarial Analyst.

What advice would you give tosomeone thinking of comingto Kent?Work hard, play hard.

Ming Jie Hao graduatedin 2012 with a BSc inActuarial Science andis now studying for a PhDin Applied ActuarialScience.

Why did you choose to studyat Kent? Kent is one of the few universitiesin the UK that offer exemptionsfrom professional exams and thecompulsory modules are taughtby qualified actuaries with yearsof experience in industry.

GRADUATE PROFILE

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CHOOSING YOUR PROGRAMME

Not sure which degreeprogramme to choose?Here’s a quick guide tothe degrees on offerwithin the School.

Actuarial ScienceThis three-year full-time programmecan get you well on the way tobecoming a fully qualified actuary.It is an excellent foundation forcareers in many other areasof finance and risk. As well asdeveloping a core understandingof mathematical and statisticalmethods, the course offers theopportunity to gain exemptionfrom eight of the Core TechnicalSubjects (CT1 to CT8) of theprofessional examinations of theInstitute and Faculty of Actuaries.The programme is fully accreditedby the UK Actuarial profession.

Financial Mathematics This programme, studied overthree years, empowers studentsto master general mathematicalprinciples while gaining specialistskills relevant to the financialsector. The first year gives asolid grounding in mathematics,economics, statistics and financialconcepts. In the remaining years,you build on these areas and learnmore about the applications ofmathematics and statistics tofinancial problems and the skillsrequired. The final year includesproject work and a choice ofmodules, giving the opportunityto specialise in areas ofmathematics that hold aparticular interest for you.

Year in IndustryWith either of these programmes,you may choose to spend anadditional year working on aplacement with a businessorganisation. This allows you to honeyour theoretical skills by applyingthem to real-life situations. It alsogives you a clearer idea of careeroptions and greatly enhances yourCV. The Year in Industry takes placebetween your second and finalyears of full-time study and countstowards your final degree result.The Placement Officer is on handto assist you before and throughoutyour placement.

Foundation yearStudents without the backgroundto go directly into degree-levelstudies can gain entry to theBSc in Financial Mathematics bycompleting a foundation year inMathematics. The foundation yearcovers the mathematical skills youneed to enter Stage 1 of the degree.

There is no foundation-year entryroute directly into Actuarial Science,but if you wish to study ActuarialScience and you come from aregion where A levels or equivalentqualifications are not available,you could consider entry viaa Foundation Year in Mathematicsfollowed by enrolling in a BScin Financial Mathematics. It ispossible, subject to conditions,to transfer to the BSc ActuarialScience degree for Stages 2 and 3.

We do not recommend theFoundation Year in Mathematicsas an entry route to ActuarialScience if you can take A levelsor equivalent qualifications instead.

For details of other undergraduatedegrees offered by the School ofMathematics, Statistics & ActuarialScience, see: www.kent.ac.uk/smsas

You can order subject leafletsor download a pdf at:www.kent.ac.uk/studying/leaflets


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STUDYING AT STAGE 1

Stage 1 represents thefirst year of your degreeprogramme. At Stage 1,the marks do not counttowards your final degreeresult.

In the first year, and to a lesser extentin the second year, both the ActuarialScience and Financial Mathematicsprogrammes have some overlap withother mathematical degrees. Thisgives you the flexibility to transferto certain other degrees at the endof your first year or, in some cases,at the end of your second year.

Transfer from Actuarial Scienceinto Financial Mathematics aftersuccessfully completing Stage 1 isusually possible without any specialrequirements. Transfer from FinancialMathematics into Actuarial Scienceat the end of Stage 1 is possiblefor students meeting a minimumstandard who undertake some self-study during the vacationperiod before Stage 2.

In the first year, all Actuarial Scienceand Financial Mathematics studentstake the following modules:• Business Economics• Calculus and Mathematical

Modelling (counts as twomodules)

• Matrices and Computing• Proofs and Numbers.

Actuarial Science students alsotake:• Financial Mathematics (counts

as two modules)• Probability and Statistics for

Actuarial Science.

Financial Mathematics studentsalso take:• Finance 1• Introduction to Financial

Concepts• Statistics.

Modules: Stage 1 Business EconomicsThis module introduces you to thecore economic principles and howthese could be used in a businessenvironment to help decisionmaking and behaviour.

Calculus and MathematicalModellingIn the first part of the module,we take a calculus approachto mathematical analysis andprovide rigorous proofs of variousfundamental results in classicalanalysis. In the second part, thecalculus techniques are usedto solve differential and differenceequations; numerous applicationsare discussed.

Finance 1This module builds on thecompound interest conceptsstudied in Introduction to FinancialConcepts. The concepts areapplied to analyse elementarycompound interest problems andto carry out the valuation of differentkinds of cash flow streams.


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STUDYING AT STAGE 1 (CONT)

Financial MathematicsThis module introduces the conceptof ‘interest’, the price for the useof money, which is fundamentalto all long-term financial contracts.Interest is said to be ‘compounded’if interest is payable on the interestpreviously earned. This moduledeals with accumulation of pastpayments and the discounting offuture payments at fixed and varyingrates of compound interest. Theconcepts are applied to analysevarious financial problems and tocarry out the valuation of differentkinds of cash flow streams.

Introduction to FinancialConceptsThis module introduces twoconcepts that are fundamental tothe theory and practice of finance:probability and compound interest.The probability componentintroduces the main conceptsin elementary probability theory,and lays the foundations for theStatistics module which follows.The second component introducesthe idea of ‘interest’, the price for theuse of money. Interest is said to be‘compound’ if interest is payable onthe interest previously earned. Thismodule deals with accumulation ofpast payments and the discountingof future payments at fixed andvarying rates of compound interest.

Matrices and ComputingThis module involves two parts(a) computing and (b) matrixalgebra. The first part provides anintroduction to some basic IT using

the MAPLE, EXCEL and Rpackages as principal modelsfor mathematical, spreadsheetand statistical applications. Theintroduction to MAPLE coverselementary functions andcommands. The introduction toEXCEL covers the efficient use ofspreadsheets. In the introductionto R, you learn the elementarycommands and actions that arenecessary for basic plots and datahandling.

The second part serves as anintroduction to matrix algebra andthe ideas of linear spaces, startingwith the systematic solutionof systems of linear equations.Topics include: systems of linearequations and Gaussian elimination;determinants; Eigenvalues andEigenvectors; vector spaces;vectors in dimensions two and threeand linear systems of differentialequations.

Probability and Statistics forActuarial Science The module introduces you to thebasic concepts of probability andstatistics, with applications to avariety of topics; the material willbe related to real data at everystage. MINITAB will be used toprovide statistical computingfacilities. After dealing withprobability theory, the modulecovers descriptive statistics. Thisis followed by elementary statisticalinference and applications, mostlybased on the Normal, t, x² and Fdistributions.

Proofs and NumbersNumbers and proofs are centralnotions in modern mathematicsthat have not only found applicationsin many other sciences but alsoin our everyday life. For instance,the security of our mobile phonesrelies on properties of integers.In this module you are introducedto some of the fundamental resultsin number theory, and gain anappreciation of the concept ofproof in mathematics.

StatisticsThis module introduces you to thebasic concepts of statistics. Thematerial is related to real data atevery stage and MINITAB is usedto provide statistical computingfacilities for all the material studied.Data description and data summaryare studied, followed by anintroduction to the main methodsof inference. Most material is basedon the Normal, t, and F distributions,but some simple non-parametricprocedures are also covered.Topics covered in the moduleinclude: graphical representationof data; numerical summariesof data; sampling distributions;point estimation; interval estimation;hypothesis tests; associationbetween variables and anintroduction to nonparametricprocedures.


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STUDYING ATSTAGES 2 AND 3

Stages 2 and 3 representthe second and finalyears of your degreeprogramme.

Both your second and final-yearmarks count towards your finaldegree result. Most modulesare assessed by a combinationof end-of-year examinationsand coursework.

In the second year, all ActuarialScience and Financial Mathematicsstudents take the following modules:• Analysis• Linear Algebra.

Actuarial Science students alsotake:• Actuarial Practice• Contingencies 1• Corporate Finance for Actuaries• Financial Reports and their

Analysis

• Probability and Statistics forActuarial Science 2

• Statistics for Insurance• Time Series Modelling and

Simulation.

Financial Mathematics studentsalso take:• Corporate Finance for Financial

Mathematicians• Economics 2• Portfolio Theory and Asset Pricing

Models• Probability and Inference• Probability and Measure Theory• Regression.

In their final year, Actuarial Sciencestudents take:• Contingencies 2• Financial Modelling• Mathematics of Financial

Derivatives• Portfolio Theory and Asset

Pricing Models

• Stochastic Processes • Survival Models.

Financial Mathematics: Stage 3 iscurrently undergoing some review.Probable modules include:• A mini-projects module tailored

towards financial topics• Mathematics of Financial

Derivatives• Stochastic Processes• Time Series Modelling and

Simulation.

And four further modules chosenfrom:• Analysis of Variance• Applied Stochastic Modelling

and Data Analysis• Calculus of Variations• Computational Mathematics*• Discrete Mathematics• Elements of Abstract Analysis• Games and Networks• Groups and Representations• Groups and Rings*• Linear Programming and

its Applications• Mathematical Techniques and

Differential Equations*• Nonlinear Systems and

Mathematical Biology• Numerical Solutions of Differential

Equations• Polynomials in Several Variables• Practical Multivariate Analysis• Several Variable Calculus.*

We expect to add another optionalmodule on stochastic calculus.

*Students may take no more thanthree out of the four modulesmarked with an asterisk.


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STUDYING ATSTAGES 2 AND 3 (CONT)

Modules: Stage 2 AnalysisThe concept of a limit is basic tocalculus and, unless this conceptis defined precisely, uncertaintiesand paradoxes will creep into thesubject. Based on the foundationof the real number system, thismodule develops the theory ofconvergence of sequences andseries and the study of continuityand differentiability of functions.The notion of Riemann integrationis also explored.

Contingencies IThis module introduces the conceptof survival models, which modelfuture survival time as a randomvariable. The concept is combinedwith the financial mathematics learntin the first year, making it possibleto analyse simple contracts whichdepend on survival time, such aslife insurance and annuities.

Corporate Finance for ActuariesThis module introduces anddevelops the concepts andelements of corporate finance,including a knowledge of theinstruments used by companiesto raise finance and managefinancial risk.

Corporate Finance for FinancialMathematiciansThis module provides a broadintroduction to corporate finance.Sufficient basic accountingconcepts are covered to underpinthe corporate finance topics,which include: • Types of business entity • Agency theory and

principal/agent problems• The structure and methods of

financing a joint stock company• The issue of securities and the

securities markets• How taxation affects financing

and investment decisions

• Basic derivatives and their useto mitigate risk

• Company capital structure anddividend policy

• Cost of capital and its interactionwith investment projects

• Capital project appraisaltechniques.

Economics 2In this module, recent developmentsand methodologies in economictheory are presented and analysed.The module builds on the economicbackground developed in Stage 1,enabling you to appreciate recentdevelopments and methodologiesin economics and the links betweenthe theory and their practicalapplication, and to critically evaluatesuch methodologies. At the endof the module, you will be ableto understand, analyse andcritically assess current microand macroeconomic problems.

The syllabus includes: consumerdemand, firms and supply;equilibrium, efficiency and welfare;motives and organisation of firms;markets for goods and financialservices; theories of unemploymentand inflation; macroeconomicaggregates and measures; growththeory, neo-classical growth;borrowing, lending and the inter-temporal budget constraint,consumption theory.

Financial Reports and theirAnalysisThis module introduces theconcepts and techniques offinancial accounting and enablesyou to understand and interpret


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critically financial reports ofcompanies and financial institutions,including financial statements usedby pension funds and insurancecompanies. You are introducedto the use of spreadsheets infinancial analysis.

Linear AlgebraThis module considers the abstracttheory of linear spaces togetherwith applications to matrix algebraand other areas of mathematics(and its applications). Since linearspaces are of fundamentalimportance in almost every areaof mathematics, the ideas andtechniques discussed in this modulelie at the heart of mathematics.

Portfolio Theory and AssetPricing ModelsThis module examines currenttheories on portfolio managementand developing asset models toassist risk management of financialservices firms. Topics coveredinclude: efficient market hypothesis,measures of investment risk,portfolio theory, models of assetreturns, asset pricing models,Brownian motion, martingales,stochastic calculus, Ito processesand stochastic models of securityprices.

Probability and Inference This module develops thetechniques introduced in the firstyear probability and statisticsmodules, and lays the foundation forseveral third-year statistics modules.The probability component of themodule is mainly concerned withhow to find probability distributions

of functions of random variables,an essential skill in proving standardstatistical results and in applyingprobability and statistics in novelsituations.

The study of sampling distributions,which underpin much of statisticalinference, provides a bridge tothe statistical part of the module.Statistical inference may be dividedinto point estimation, intervalestimation and hypothesis testing.All of these have been introducedin the first-year statistics module.This module extends the rangeof examples and provides sometheoretical justification for the choiceof particular techniques in particularcases.

Probability and Measure TheoryThis module introduces the basictools of measure theory, such asmeasurable functions, sigma-fieldsand filtrations. It covers the conceptof conditional expectation and theuse of martingale sequences indiscrete and continuous time. Youlearn how to apply these skills ina financial context.

Probability and Statistics forActuarial Science 2This module develops thetechniques introduced in the first-year module, Probability andStatistics for Actuarial Science.The probability component of thismodule is mainly concerned withhow to find probability distributionsof functions of random variables,an essential skill in proving standardstatistical results and in applyingprobability and statistics in novel

situations. The study of samplingdistributions, which underpin muchof statistical inference, providesa bridge to the statistical part of themodule. Statistical inference may bedivided into point estimation, intervalestimation and hypothesis testing.All of these have been introducedin Probability and Statistics forActuarial Science in Stage 1.This module extends the rangeof examples, and provides sometheoretical justification for the choiceof particular techniques in particularcases.

RegressionThis module introduces you to thetheory and practice of regression,and associated linear modeltechniques. Quite oftenexperimenters and researcherswish to express a response variabley as a function of some other(explanatory) variables. Forexample, y might be the yieldof a chemical process and theexplanatory variables might betemperature and pressure. Knowingthe relationship would enable yto be predicted for particular valuesof temperature and pressure. In thismodule, the method of derivingsuch a relationship is that of leastsquares and the theoretical andpractical aspects of this method arecovered in some detail. You will havean opportunity to use computerprograms in this module.

Statistics for InsuranceThis module covers aspects ofStatistics which are particularlyrelevant to insurance. Some topics(such as risk theory and credibility


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Modules: Stage 3Financial Mathematics studentshave a wide choice of optionalmodules in Stage 3. Please see thebrochure for mathematics degreesor go to www.kent.ac.uk/smsas

Actuarial PracticeThis module provides you withan understanding of the practicalapplication of the techniquesyou learn in the BSc in ActuarialScience. It brings together skillsfrom other modules, and ensuresthat students have the necessaryentry-level skills and knowledgeto join the actuarial professionor to embark on related careers. Italso provides a platform for ongoingprofessional development.

Contingencies 2Actuarial techniques are appliedto a wide-range of products in thismodule. In addition, expenses andprofitability models for calculatinggross premiums are introduced.You also look at population/selectiontechniques.

Financial ModellingThis module is split into two parts:1. An introduction to the practicalexperience of working with thefinancial model, PROPHET, whichis used by commercial companiesworldwide for profit testing,valuation and model office work.2. An introduction to financialmodels. This shows you howto analyse and summarise data,produce a model with an audit trailand develops your ability to applythe results.

theory) have been developedspecifically for actuarial use. Otherareas (such as Bayesian Statistics)have been developed in othercontexts but now find applicationsin actuarial fields. Stochasticprocesses of events, such asaccidents, together with the financialflow of their payouts, underpin muchof the work. Since the earliestgames of chance, the probabilityof ruin has been a topic of interest.Topics studied include: decisiontheory; Bayesian Statistics; lossdistributions; reinsurance; credibilitytheory; empirical Bayes credibilitytheory; risk models; ruin theory;generalised linear models; run-offtriangles.

Time Series Modelling andSimulationA time series is a collection ofobservations made sequentiallyin time. Examples occur in a varietyof fields, ranging from economicsto engineering, and methods ofanalysing time series constitute animportant area of statistics. Thismodule focuses on various timeseries models, including somerecent developments, and providesmodern statistical tools for theiranalysis. The other part of themodule covers extensively simulationmethods. These methods arebecoming increasingly importanttools as simulation models can beeasily designed and run on modernPCs. Various practical examples areconsidered to help you tackle theanalysis of real data.


STUDYING ATSTAGES 2 AND 3 (CONT)

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portfolio theory, models of assetreturns, asset pricing models,Brownian motion, martingales,stochastic calculus, Ito processesand stochastic models of securityprices.

Stochastic ProcessesA stochastic process is a processdeveloping in time according toprobability rules. For example,models for reserves in insurancecompanies, queue formation, thebehaviour of a population ofbacteria, and the persistence (orotherwise) of an unusual surnamethrough successive generations.The syllabus includes coverageof a wide variety of stochasticprocesses and their applications:Markov chains; processes incontinuous-time, such as thePoisson process; the birth anddeath process and queues.

Survival ModelsCalculations in life assurance,pensions and health insurancerequire reliable estimates oftransition intensities/survival rates.This module covers the estimationof these intensities. The syllabusincludes the following: principles ofactuarial modelling. distribution anddensity functions of the randomfuture lifetime, the survival functionand the force of hazard; estimationprocedures for lifetime distributionsincluding censoring, Kaplan-Meierestimate, Nelson-Aalen estimateand Cox model; statistical models oftransfers between states; maximumlikelihood estimators for the transitionintensities;binomial and Poissonmodels of mortality; estimation ofage-dependent transition intensities;the graduation process; testing ofgraduations; and measuring theexposed-to-risk.

Mathematics of FinancialDerivativesHere, you examine theunderstanding and pricing ofoptions and derivatives, alongwith models for interest rates andcredit risk models. The syllabusincludes: an introduction toderivatives, Greeks, binomialmodel, Black-Scholes option pricingformula, martingale representationtheorem, arbitrage-free pricing,interest rate models, credit riskmodels.

Portfolio Theory and AssetPricing ModelsThis module examines currenttheories of portfolio managementand developing asset models toassist risk management of financialservices firms. Topics include:efficient market hypothesis,measures of investment risk,


SCHOLARSHIPS AND BURSARIESFor details of scholarshipsand bursaries at Kent, seewww.kent.ac.uk/scholarships

18

VISIT THE UNIVERSITY

Come along for an OpenDay or a UCAS Visit Dayand see what it is like tobe a student at Kent.

Open DaysKent runs Open Days during thesummer and autumn. These providean excellent opportunity for you todiscover what it is like to live andstudy at the University. You canmeet academic staff and currentstudents, find out about ourcourses and attend subjectdisplays, workshops and informallectures. We also offer tours aroundthe campus to view our sportsfacilities, the library, and Universityaccommodation.

For further information and detailsof how to book your place, seewww.kent.ac.uk/opendays

UCAS Visit DaysIf you apply to study at Kent andwe offer you a place (or invite you toattend an interview), you will usuallybe sent an invitation to one of ourUCAS Visit Days. You can book toattend through your online KentApplicant Portal. The Visit Dayincludes presentations in yoursubject area, guided tours ofthe campus, including Universityaccommodation, and theopportunity to speak with bothacademic staff and with currentstudents about your chosen subject.

For further information, seewww.kent.ac.uk/visitdays

Informal visitsYou are also welcome to make aninformal visit to our campuses at anytime. The University runs tours of theCanterbury and Medway campusesthroughout the year for anyone whois unable to attend an Open Day orUCAS Visit Day. It may also bepossible to arrange meetings withacademic staff, although we cannotguarantee this. For more details andto book your place, seewww.kent.ac.uk/informal

Alternatively, we can provide youwith a self-guided tour leaflet, whichincludes the main points of interest.For more details and to download aself-guided tour, go towww.kent.ac.uk/informal



LocationCanterbury.

AwardBSc (Hons).

Programme typeFull-time.

UCAS codeActuarial Science (N323)Actuarial Science with a Yearin Industry (N324)Financial Mathematics (GN13)Financial Mathematics with a Yearin Industry (NG31)

Offer levels

Actuarial Science

AAA at A level or AAB if FurtherMathematics is taken; IB Diploma34 points, including Mathematics6 at HL or IB Diploma with 17points at HL includingMathematics 6 at HL.

Financial Mathematics

ABB at A level, IB Diploma 34points, including Mathematics6 at HL or IB Diploma with16 points at HL, includingMathematics 6 at HL.

Required subjects

A level Mathematics grade A,including the core syllabus of PureMathematics (Use of Mathematicsis not accepted).

Professional recognitionThe Actuarial Science degree hasbeen fully accredited by the UKActuarial Profession. It can giveexemption from eight of the CoreTechnical subjects (CT1 to CT8) ofthe professional examinations setby the UK Actuarial profession,and gives a firm foundation for thelater subjects. Graduates may alsoget exemption from some ofthe examinations set by TheChartered Insurance Institute.

Offer levels and entryrequirements are subjectto change. For the latestinformation, see:www.kent.ac.uk/ug

Terms and conditions: the University reserves the right to make variations to the contentand delivery of courses and other services, or to discontinue courses and other services, ifsuch action is reasonably considered to be necessary. If the University discontinues anycourse, it will endeavour to provide a suitable alternative. To register for a programme ofstudy, all students must agree to abide by the University Regulations (available onlineat: www.kent.ac.uk/regulations).

Data protection: for administrative, academic and health and safety reasons, the Universityneeds to process information about its students. Full registration as a student of theUniversity is subject to your consent to process such information.

More informationIf you have any further queries onhow to choose your degree, ouradmissions procedures, how toprepare for your studies or wouldlike information about the Universityof Kent’s facilities and services,please contact us. T: +44 (0)1227 827272 Freephone (UK only): 0800 975 3777 www.kent.ac.uk

How to applyFor admissions enquiries Tel: 01227 827272Email: [email protected]

For further information aboutthe Actuarial Science and FinancialMathematics degree programmes,please contact:The Admissions Officer,School of Mathematics, Statisticsand Actuarial ScienceUniversity of Kent, Canterbury, Kent, CT2 7NPTel: 01227 827181Fax: 01227 827932Email: [email protected]/smsas

COME ANDVISIT US

University of Kent, The Registry, Canterbury, Kent CT2 7NZ T: +44 (0)1227 764000 www.kent.ac.uk

We hold Open Days at our Canterburyand Medway campuses.

For more information, see:www.kent.ac.uk/opendays

DPC 11667906/14 PUB348

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ACTUARIAL SCIENCE - University of Kent