April 14, 2015 Lindenwood University Presentation Minyu Cao, ASA Taylor Pickett, FSA

What is an actuary? Why would I want to be one? How do I prepare for a career as an actuary? What is reinsurance? About RGA Table of Contents 2

What is an Actuary? 3

We manage risk. The future is uncertain and full of risk. Risk is the chance that an undesirable event will occur. Risk is opportunity! That's where actuaries come in. We are the backbone of financial security. Actuaries are known for: Unbeatable analytical and problem-solving skills. Trustworthy and respected judgment. Technical expertise. Actuaries are experts in: Evaluating the likelihood of future events. Designing creative ways to reduce the likelihood of undesirable events. Decreasing the impact of undesirable events that do occur. What is an Actuary? 4

Actuaries are involved in your everyday life: Auto insurance premiums Life insurance product development Retirement funding and planning Social security Manage assets and liabilities for banks and other financial institutions What is an actuary? 5

Typically the insurance industry (~45%) Life Health Property & Casualty Retirement/Pensions Reinsurance But opportunities are available elsewhere: Consulting Enterprise Risk Management (ERM) Government (Social Security, Medicare, Dept. of Labor) Investments & Asset Management Marketing/Sales Organizations Where do actuaries work? 6

Taylor is an associate actuary in the Research team at Global Research and Development Minyu is an assistant actuary in the Predictive Analytics team at Global Research and Development Department. What do we do? 7

Why do we need research? Answer questions from other departments Answer questions from clients Improve our business operations (pricing, underwriting, claims) Forms of research content Bulletins Whitepapers Webcasts Larger scale studies Research 8

Predictive Analytics 9 Models range from simple linear regression to advanced techniques including decision trees, neural networks, generalized linear models and generalized additive models. The deployment of predictive analytics and models is both art and science. Models must be chosen to get the best fit of data and factor variables to produce a strong predictive target outcome. It is an approach to forecasting an outcome or probability, typically using historical facts and data.

10 Achieve growth in sales via the bancassurance channel. Sell bank customers protection products on a guaranteed issue or simplified issue basis with minimal impact on price. Cross Sell Models Predictive Analytics Improve the customer experience by: Issue policies faster Reduce the UW process for customers most likely to be standard Reduce acquisition expenses Leverage the value of their internal data Bank Customer Life Policyholder Penetration

Ours has been a top-ranked job. Actuaries have the best job in America, according to a April 2013 study by CareerCast.com Number 1 best job: Actuary Forbes 2013 The 10 Best Jobs of 2011: Mathematician, Actuary and Statistician ranked #2, #3, #4 by CareerCast.com Why does it rank so highly: High Income Job Security Low Stress Environments Growth Opportunity Work is Intellectually Stimulating Why become an actuary? 11

You want to explain to everyone you know what an actuary is You want your judgment to be highly-valued and trusted You want to participate in high-level business decision-making You want skills that are transferrable across industries You enjoy learning something new everyday You want the opportunity to travel You like advancement that is merit-based (exams, experience) You want a professional title Why become an actuary? 12

13 What should I do to prepare?

Get a degree Actuarial Science Mathematics, Statistics, Economics, Finance Exams, Exams, Examsand more Exams Necessary stepping stone into the industry Progression through exams can dictate abilities as an actuary Paid study time & materials and defined salary increases Internships, Internships, Internships Goal obtain at least 1 internship while in college Nothing beats real-world experience Internships lead to full-time employment Did I mention they pay well? 14

Accounting courses Business Related courses Communication courses Useful College Courses 15

Extremely important early in your career Details will vary depending on your company and job function Common to (almost) all actuaries Excel V isual B asic for A pplications (VBA) Role-specific skills R Database programs (e.g. Toad, SQL Server, SAS) and coding languages (e.g. SQL) Modeling software (e.g. Prophet, MoSes, TAS, VIPiTech) Build Your Technical Skills 16

Most analysis done here Important functions Vlookup Index Match Indirect Others too many too list! Important analysis tools Charts (many types) Pivot tables PowerPivot / Cubes (when dealing with very large data sets) Build Your Technical Skills 17 Excel

Runs behind the scenes in all of MS office (even Outlook) Very useful for automating repetitive processes Huge potential for time savings Able to do anything you could yourself in Excel through programming Create and modify charts or pivot tables Move data Create and modify formulas Add tabs, create new workbooks, open/close existing workbooks Able to do some things you cant in normal Excel Execute changes on an external DB (e.g. create, update, delete tables) Create text files Build Your Technical Skills 18 Visual Basic for Applications (VBA)

Excel VBA SQL ACCESS AXIS Pricing Tool MoSes Asset Intensive, Structured Finance, etc. R Predictive Modeling Commonly used software varies by departments. Intern Projects 1 st step Technical Skills

Macro updating for research bulletin maps 20 Some examples - Global Research Team

21 Reinsurance 101

An agreement to transfer one or more elements of a risk contained in an insurance contract in whole or in part from one party (ceding company) to another (reinsurer, or assuming company) What is Reinsurance? We provide insurance to insurance companies

Risk diversification Increase capacity larger policies Mitigate volatility in financial results Capital/tax management Catastrophic Protection Enter a new market Expertise Transfer Why Use Reinsurance?

So Where do actuaries fit in the business function? 24

RGACUSTOMERSRGACUSTOMERS Claims Assumed Administration RGA Business Workflow Claim Request Statements, Data, & Premiums Claim Payment

Sales Pricing Treaties Claims Assumed Administration New Product Quote Request New Product Quote Claim Request Treaty Negotiations Statements, Data, & Premiums Pricing Information Claim Payment Quote Won Including Sales Sales Visit RGACUSTOMERSRGACUSTOMERS RGA Business Workflow Sales Pricing Value Added Services

RetrocessionairesRetrocessionaires Statements, Data, & Premiums Retro Admin Overretained? Claim Request RGACUSTOMERSRGACUSTOMERS Sales Pricing Treaties Claims Assumed Administration New Product Quote Request New Product Quote Claim Request Treaty Negotiations Statements, Data, & Premiums Pricing Information Claim Payment Quote Won Including Sales Sales Visit RGA Business Workflow Sales Pricing Value Added Services

RetrocessionairesRetrocessionaires Statements, Data, & Premiums Retro Admin Overretained? Claim Request RGACUSTOMERSRGACUSTOMERS Sales Pricing Treaties Claims Assumed Administration New Product Quote Request New Product Quote Claim Request Treaty Negotiations Statements, Data, & Premiums Pricing Information Claim Payment Quote Won Including Sales Sales Visit Retro Negotiations Claim Payment Finance & Valuation Acctng/Val Info RGA Business Workflow Sales Pricing Finance & Valuation Value Added Services

Research and Development Management and Information Analysis Structured Finance Risk Management Corporate Modeling Actuarial Department Pricing Valuation US Mortality Market Pricing Annuity Pricing US Valuation Asset Intensive Valuation Administration Business Development Other Related Other Actuarial

30 About RGA

Global Headquarters in Chesterfield, MO Founded in 1973 as General American Re, a reinsurance division created by General American Life Insurance Company 1979 General American Res first actuary Greig Woodring (current CEO) Currently almost 2,000 employees worldwide 400 Actuaries RGA Highlights The security of experience. The power of innovation.

Global Recognition Highly Rated; Highly Regarded by Clients

Geographic Expansion RGA in 2001 11 Offices U.S. Canada U.K. Australia Japan South Africa Mexico Spain Hong Kong Malaysia Taiwan Total Net Premiums 2001 = $1.7 billion

RGA Today Solid global footprint, market leader in most key markets Total Net Premiums 2014 = $8.3 billion 26 Offices serving our clients in over 70 countries

STIR Short Term International Rotation Program 35 The STIR program is designed to provide project-based opportunities to grow skills while experiencing new cultures and learning how RGA operates in other parts of the world. Many RGA young actuaries have taken this opportunity to other offices Toronto, London, Paris, Hong Kong and Beijing Unique Career Development Opportunity Enhanced professional growth and development Gained new cultural perspectives Learned the insurance market in another country

New Headquarters

RGA Actuarial Internship Program What is considered an excellent internship experience? Have challenging work Learn about the wide application of Actuarial profession Experience the RGA Culture Network RGA is a big company with a small companys feel. Push yourself. Ask a lot of questions. Underwriting, Actuarial Communication, Business Development Enjoy yourself and make connections.

Many different paths you can take 38 Research Actuaries Valuation Actuaries Pricing Actuaries And more Intern Rotations

Over 20 Presentations from a range of departments related to Actuarial Functions Two sessions per week Technical informational Mind opening Summer Speaker Series 39 Excel & Programming tips Overview on the RGA actuarial departments Actuarial Knowledge Industry Trend

RGA Actuarial Internship Program Who are we looking for? Sharp analytical and problem-solving skills Impeccable integrity and honesty Work extremely well in groups Excellent listening skills Be flexible Learn how to inform, communicate and influence skillfully Strong technical skills Learn all the time, from every possible source Self Motivation, Problem Solving, Creativity, and Communication Skills

Thank you for your attention. 41

Documents

April 14, 2015 Lindenwood University Presentation Minyu Cao, ASA Taylor Pickett, FSA