MSc Actuarial Finance

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Gain a reputation for excellence

FRONT COVER: MARK COOPER, MSC ACTUARIAL FINANCE 2007 AND WATSON WYATT EMPLOYEE

Undertake your MSc at Imperial College Business School and you become a graduate of one of the worlds leading universities. Imperial College Business School has a global reputation for excellence in entrepreneurship, innovation, quantitative finance and health management. Our faculty are experts in their fields. As an MSc student, you will therefore learn from their cutting-edge research and graduate with a command of the latest thinking. You will also graduate with a qualification that is recognised and respected everywhere for its academic excellence. The focus of the programme is highly practical. You apply what you learn to group discussion and project work, building your technical skills and your confidence. This combination of academic rigour and practical application is why our MSc graduates are so highly valued by employers.

Studying with others encourages collaboration and helps create contacts that will enrich your professional and personal networks. We understand the value and power of these networks. That is why we are dedicated to providing a friendly and supportive environment, where you feel confident to share insights with other high-calibre students. Our vibrant South Kensington location brings you to the cultural heart of London, with many of the worlds most famous museums, art galleries, parks and restaurants on your doorstep. You are also close to the City, Londons financial and business centre, where you will find the headquarters of many global organisations.

THIS PROGRAMME GIVES ME A DEEPER UNDERSTANDING OF THE CONCEPTS BEHIND THE METHODS. I DEFINITELY FEEL THAT I UNDERSTAND MY WORK MORE. IM ABLE TO GIVE MORE INPUT WHEN SPEAKING TO SENIOR COLLEAGUES AND I FEEL THAT IM BETTER AT THINKING BEYOND THE TRADITIONAL ACTUARIAL BOX.
JULIA SUN, MSC ACTUARIAL FINANCE 2007 AND WATSON WYATT EMPLOYEE (ABOVE)

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Advance your actuarial career

This innovative and pioneering part-time programme is offered only at Imperial College Business School. Working closely with the The Actuarial Profession in the UK and an advisory board of large actuarial employers in pensions and insurance, we have developed a distinctive programme that meets market needs by offering an alternative approach to your professional actuarial qualification. Todays complex financial world requires new actuarial skills. It is now crucial for actuaries to understand the language of modern finance, whether they work in insurance, pensions or investments. Our programme enables you to master these skills in a supportive environment with the potential to gain a double qualification.* Your fellow students will also be pursuing actuarial careers in a diverse range of financial organisations. This makes for dynamic, stimulating classroom discussions, enriching the learning experience. Imperial College Business School is recognised as a centre of excellence for quantitative finance. Not only are our faculty world-leading academics in their fields, they also have strong industry links, often consulting for major financial organisations. This brings invaluable understanding of current market practice into the classroom.

Advantages for sponsoring employers The MSc Actuarial Finance strengthens students expertise with a highly innovative programme, the first to combine extensive coverage of modern finance with actuarial training. Based on performance, students graduate with a double qualification exemption from most UK professional actuarial examinations (some of the CT level, all the CA level except CA2 and all the STlevel subjects), and a Masters degree from Imperial College. As a result, the MSc has the potential to speed up qualification times. By sponsoring your employees, you will gain a significant recruiting advantage in the market for aspiring actuaries.

MY COMPANY FIRST BROUGHT THE PROGRAMME TO MY ATTENTION IT WAS SOMETHING DIFFERENT TO THE EXAM ROUTE. ONE OF THE BEST THINGS IS THE ACTUARIAL PRACTICE ELEMENT WHERE INDUSTRY SPEAKERS GIVE YOU AN INSIGHT INTO WHAT THEY DO. IT MAKES YOU REALISE HOW DIVERSE OUR INDUSTRY IS AND HOW YOU CAN ACTUALLY APPLY FUNDAMENTAL ACTUARIAL KNOWLEDGE TO THE FINANCIAL INDUSTRY.
CYPRIAN NJAMMA, MSC ACTUARIAL FINANCE 2007 AND MERCER EMPLOYEE (ABOVE)

* On successful completion of the programme, and if you do sufficiently well in the programme as determined by the independent examiners appointed by the Institute and Faculty of Actuaries, the MSc gives you exemption from the following UK professional actuarial examinations: CT2, CT7, CT8, and all CA and ST subjects except CA2.

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Programme overview

Our part-time programme combines lectures with quantitative case studies. Students attend a full day of classes every week of term, over two years. In year one, you take compulsory core courses and in year two, you select two main electives and two further electives, in addition to completing a project. Induction courses Before starting the programme, we ask all students to study our introductory e-learning review classes, covering Mathematics, Statistics, Introduction to Finance and Business Computing with VBA. First Year Actuarial Practice This course provides an overview of qualitative issues which arise when techniques taught in other courses throughout the programme are applied by practising actuaries. To emphasise linkages with other material throughout the year, the course is taught for one hour each week over three terms.

Applied Econometrics for Actuaries An introduction to econometrics applicable to actuarial problems. Course material is presented through detailed examples with associated data and programs. Economics This course equips you with the basic tools of micro and macro economics, with particular emphasis on applications for actuaries. The first half of the course looks at the behaviour of individual agents (firms or households) and single markets, whilst the second part deals with the economy as a whole. Finance An introduction to financial markets and principles of financial modelling, including approaches to describing preferences under uncertainty and mean-variance analysis; capital asset and arbitrage pricing models; important features of default-free fixed income markets, and principles of portfolio management.

Corporate Finance Gives you an understanding of firms financial decisions, including the determinants of capital structure, dividends, mergers and acquisitions and real investments. Examples are employed to illustrate how the general principles of corporate finance may be applied to insurance companies and pension funds. Valuation Covers equilibrium and actuarial approaches to valuing risky payoffs, developing pricing results for financial options and a range of term structure derivatives. Discusses the pricing of non-traded exposures in insurance and pensions markets. Risk Management The first part of the course covers types of risk and methods for measurement and management. The second part looks at how insurance companies and pension funds implement risk mitigation techniques such as reinsurance, securitisation, or hedging.

Pre-study courses

Online induction courses

Mathematics Statistics Introduction to Finance Advanced Excel and VBA

Year one

Autumn term Applied Econometrics for Actuaries Economics Actuarial Practice

Spring term Finance Corporate Finance Actuarial Practice

Summer term Valuation Risk Management Actuarial Practice

Summer Accounting (e-based course) Business Communications

Year two

Autumn term Complete two of four electives: Pensions Advanced Finance Life Insurance General Insurance

Spring term

Summer term

Summer

Complete two of five electives: Individual Project Personnel Economics 8,000-word report on a topic Healthcare related to material covered Reinsurance and Securitisation in the programme Credit Risk Modelling Enterprise Risk Management

Electives run subject to student interest and availability. Imperial College Business School reserves the right to withdraw or replace an elective.

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Accounting (e-learning) This e-learning course is completed by working independently but with assistance and guidance from an online tutor. It covers general principles of accounting relevant for actuaries and looks in greater detail at the specifics of accounting for life and general insurance companies and pensions funds. Business Communications Teaches you how to communicate technical ideas effectively to business colleagues and the wider public. Second Year - Autumn and Spring terms Pensions Pensions Economics Analyses the need for pensions and the role played by state and occupational pensions. You examine the interaction between state and private pension provision in the UK and overseas, study how pensions influence individual behaviour and how pension design can take account of this. Pensions Finance Teaches you the financial aspects of pension funding for defined benefit and defined contribution funds, examining detailed real-world examples. You will learn to apply risk management, financial and investment techniques to pension fund issues. Advanced Finance Advanced Investments Covers factor models for pricing investments and calculating risk-adjustments for trading strategies; the prediction of returns on investments and tactical asset location, and both static and dynamic versions of strategic asset allocation using mean-variance or more advanced techniques. Advanced Financial Valuation Covers advanced techniques in contingent claims analysis. Valuation techniques are derived and applied for options, term structure derivatives, credit-sensitive instruments and structured products.

Life Insurance Life Insurance Economics Covers the broad economics of life insurance, introducing you to the incentives faced by agents and how these influence the way the market functions. Life Insurance Finance Introduces you to important financial operations performed by life companies, including the measurement and management of risk, pricing and reserving of life contracts, and their investment policies and capital management. General Insurance General Insurance Analysis Introduces you to institutional features of the general insurance market, with techniques for analysing general insurance exposures, and important aspects of the operation of general insurance companies. General Insurance Contract Design and Pricing This course looks in depth at the design, pricing, underwriting and reinsurance of general insurance contracts.

Credit Risk Modelling This course provides you with advanced knowledge of credit risk models and the understanding of their implications in an actuarial context. Enterprise Risk Management This course provides an overview of risk management at the enterprise level. Topics covered include market risk, credit risk, operational risk and regulatory risk. For further details of each course visit www.imperial.ac.uk/business-school/mscactuarial-finance

Project An essential part of the programme, this is an individual report of 8,000 words, based on your own survey and research plan. Faculty will assist, facilitate and then assess your efforts, but you will work independently and take ultimate responsibility for your project. Teaching Students attend lectures and classes one full day a week during each 10-week term. We use lectures, support classes, quantitative case studies and computer laboratory lessons to develop practical learning. Assessment Assessment for courses is based on a combination of examinations (70%) and coursework (30%). Exemptions Upon successful completion of the programme you will receive a Masters in Actuarial Finance. If you do sufficiently well in the programme, as determined by an the examiners appointed by the Institute and Faculty of Actuaries, you will also be exempt from some or all of the following UK professional actuarial examinations: CT2, CT7, CT8, and all CA and ST subjects except CA2.

Second Year - Summer term Personnel Economics This course examines the general principles of personnel economics relevant for actuaries, and considers implications of practical policies a firm may adopt. Healthcare This course looks at health insurance, covering the nature of the UK market, the incentives faced by agents and the measurement and management of risk in healthcare. Reinsurance and Securitisation Provides advanced material about risk transfer mechanisms including reinsurance and securitisation. The subject is treated both from the point of view of an investor, writing reinsurance or purchasing a structured product, and an issuer, buying reinsurance or creating a securitisation.

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Faculty

Specialists in their field, the Finance and Accounting Group faculty have international research reputations, consult for global corporations and advise government and international agencies. Tony Hewitt, Programme Director Having practised as a consulting actuary for over 35 years, Tony is now passionate about the education of actuaries. He is making full use of Imperial College's academic excellence ranging from healthcare management and engineering control theory to climate change modelling and mega-project innovation. His personal interests include Healthcare Quality Improvement, Collective DC Pension Reform, Professionalism and Enterprise Risk Management. He is a strong supporter of the Actuarial Profession, helping to create greater awareness of professionalism issues. David McCarthy, Lecturer in Actuarial Finance Davids specialist research interest is the economics and finance of pensions. His current research examines the factors affecting worker pension choices and the role of pensions in household portfolios in the UK. David has consulted for a number of pension consultancies, the World Bank, and the pension departments of international governments. Robert Kosowski, Lecturer in Finance Robert is head of the Risk Management Lab Hedge Fund Centre and is a lecturer in Finance. He has previously taught finance at INSEAD and has also worked at Goldman Sachs in London, Boston Consulting Group in Germany and Deutsche Bank in New York. William Perraudin, Professor in Finance William is head of the Risk Management Laboratory. His research interests include risk management, structured products, portfolio credit risk modelling and financial regulation. He has previously worked as Special Advisor to the Bank of England and was heavily involved in the financial engineering behind BASEL II for bank capital. Enrico Biffis, Lecturer in Actuarial Finance Enricos research has focussed on market-consistent accounting of insurance liabilities, valuation of options embedded in insurance contracts and pricing of mortality-contingent claims. He is now also working on optimal investment and reserving for both life and non-life business. Enrico is a qualified actuary in Italy and junior professor at Bocconi University.

Be amongst the best

Our reputation attracts high-calibre individuals, all sharing certain qualities. Alongside an excellent academic track record, you will have the self-motivation and commitment necessary to succeed in a competitive environment. We value strong interpersonal and communications skills, a hunger for knowledge as well as commercial and international awareness.

Nationality by region 200709 cohort

Degree background

I Africa/ Middle East 8% I Asia/Pacific 6% I Europe 6% I UK 80%

I I I I I

Computing Economics Engineering Mathematics Science

5% 15% 10% 54% 16%

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Make connections

A vibrant social life in the heart of London Contacts you make through lectures are developed and widened through our social and networking events. The lasting relationships you form will enrich you both professionally and personally. You will network not only with your fellow students, but with alumni, Adjunct Professors, students from other programmes and visiting lecturers. Students nominate their own social reps, who organise events part-funded by the School. We recognise that you will be juggling work and study, so we make it easy for you to remain physically as well as intellectually fit through free membership to Ethos, Imperials state-of-the-art sports centre, just a short walk from the Business School building.

Alumni Network and services Your connection to Imperial College Business School is a valuable lifelong resource. Like every other aspect of our MSc programmes, the alumni service offers you practical benefits and allows you to take full advantage of your Imperial connections on graduation. You will be invited to Distinguished Speaker events, enjoy free library access for life and receive an annual magazine. You can join any of the social clubs around the world. You are also given access to an online directory of Imperial College alumni contacts. It is a lifelong community which keeps you in touch wherever your career takes you.

I WAS ATTRACTED TO THE PROGRAMME BY THE REPUTATION OF THE TEACHING AND THE PART-TIME STUDY ROUTE ALSO FITS INTO MY LIFE AT THE MOMENT. THE PROGRAMME ISNT PURELY ACADEMIC ITS APPLICABLE TO WHAT WE DO AT WORK AND HOW THE FINANCIAL WORLD IS CHANGING. THE PROGRAMME GIVES YOU AN OPPORTUNITY TO SEE YOURSELF NOT JUST AS AN ACTUARY, BUT AS DOING OTHER THINGS IN THE BIGGER WORLD OF FINANCE.
ALEKSANDRA KLAIC, MSC ACTUARIAL FINANCE 2007 AND HEWITT ASSOCIATES EMPLOYEE (ABOVE)

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Entry requirements
Who should apply? You will have proven success in a degree with a strong mathematics component. You will be literate in modern finance and will ideally have one or two years' work experience as an actuarial trainee. Many students are sponsored by their employers. This offers an immediate return as students bring increased expertise to their roles. Entry requirements Successful candidates are committed to developing the specific skills to help them progress in their actuarial career. You will graduate not just with an actuarial qualification but also with a broad set of skills in modern finance. This combination will give you the grounding and expertise to be an effective actuary or to pursue another area, such as banking or the hedge funds industry. We recruit students with lively, curious minds capable of creative invention and intellectual application. You must also possess a strong academic background in a quantitative discipline, and: A good degree (equivalent of a UK Upper Second Class Honours Degree or above) ideally in mathematics, statistics, quantitative economics, finance, engineering, or a natural science subject and; Have successfully completed at least four of the five Institute and Faculty of Actuaries examinations CT1 and CT3-CT6. All students are required to hold an English language qualification, the acceptable minimum standard qualifications include the following: GCSE English grade C or equivalent IELTS (academic) An overall score of 7.0 with a written and spoken score of 6.0 TOEFL (paper-based) An overall score of 610 with a minimum score of 4.5 in written English TOEFL (computer-based) An overall score of 253 with a minimum score of 4.5 in written English TOEFL (internet-based) An overall score of 98 with a minimum score of 25 in writing and 23 in speaking.

Please note that this requirement is equally applicable to Home, EU and Overseas students. It may be possible to waive the Imperial College Business School higher language requirement element under exceptional circumstances at the discretion of the School. ALL applications MUST meet the College minimum requirement.

How to apply
Visit our website www.imperial.ac.uk/business-school for more information and to submit your application online. If you have further questions, please visit our Find an answer section at www.imperial.ac.uk/askimperial We run a rolling admissions process and there is no specific application deadline. However, the earlier you apply, the earlier you receive a decision. The programme commences in early October each year. Fees Fees for the two-year programme starting in October 2009 are 21,000*. For companies sponsoring more than five students on the programme, a reduction will be offered.
* Fees are subject to confirmation

Alternatively, if you would like us to visit your company to give a presentation then please contact us to arrange this. Contact Recruitment Steve Togneri, Recruitment and Development Executive T: +44 (0)20 7594 9208 F: +44 (0)20 7594 9184 E: mscactuarial@imperial.ac.uk W: www.imperial.ac.uk/business-school/msc-actuarial-finance

Imperial College Business School Tanaka Building South Kensington Campus London SW7 2AZ United Kingdom T: +44 (0)20 7594 5656 F: +44 (0)20 7594 9184

www.imperial.ac.uk/business-school

Disclaimer: While all reasonable efforts have been made to ensure that the information in this publication is correct, matters covered by this publication are subject to change. Imperial College Business School accepts no liability for any loss or damage caused by errors or omissions, howsoever caused.

Information sessions We run regular, on-campus information sessions for the MSc Actuarial Finance. Each session includes a presentation by a Finance and Accounting Group faculty member, followed by a reception where you have the opportunity to discuss the programme with current students and Business School staff. Reserve your place online at www.imperial.ac.uk/business-school/ waystomeetus telephone +44 (0)20 7594 5656 or email business-school@imperial.ac.uk

Published December 2008.