pwc

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ANU Actuarial Week 2003
PwC

• 14 August 2002
• Anna Dayton

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Agenda

• Introduction
• PricewaterhouseCoopers Actuarial
• What we do at PricewaterhouseCoopers Actuarial
• Your actuarial career
• Questions

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PricewaterhouseCoopers Actuarial
PwC
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Did you know that

• PricewaterhouseCoopers has
• the second largest actuarial practice in
  Australia
• the largest general insurance consulting
  practice
• now employs over 100 actuarial professionals
• in Australasia has actuarial practices in Perth,
  Auckland, Wellington, as well as Melbourne and
  Sydney
• employs over 500 actuaries worldwide (3rd
  largest consulting firm)

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Our Purpose

• We help financial services clients
• turn risk into value.
• We play a key role in the delivery of
• solutions for financial management by
• identifying issues, opportunities and solutions
  to complex financial risks, and
• operating within multi-disciplinary teams to
  quantify and optimise the value derived from
  undertaking risk.

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Recent Growth

• Successful growth history
• An increasingly wide-ranging actuarial practice
  based on core skills in
• General Insurance
• Life Insurance and Financial Services
• Financial Markets
• Health risk management

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Major Clients in the last few years

• Majority of general insurers
• Major life insurers in Australia and New Zealand
• Majority of accident compensation schemes
• Health providers
• Increasing presence across Asia
• Strong and growing practice in banking and
  financial services

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What we do at PricewaterhouseCoopers Actuarial
PwC
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General Insurance

• Pricing
• Outstanding claims
• Company valuation
• Dynamic financial modelling
• Risk quantification
• Strategic advisory corporates and other
  stakeholders

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Life Insurance

• Appraisal values
• Product valuation
• Capital management
• Reserving
• US GAAP reporting
• Strategic advisory

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Financial Risk Management

• Enhancing shareholder value by identifying,
  measuring, managing and monitoring risks arising
  from involvement in financial markets on both the
  supply side (financial institutions) and demand
  side (corporates)
• Credit risk
• Foreign exchange risk
• Commodity trading risk
• Energy trading risk
• Interest rate risk
• Liquidity risk
• Operational risk
• Regulatory risks

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Health Risk Management

• Applying actuarial principles to health services
  provision and valuation
• Evaluate health outcomes for
• Government
• Private health providers
• Health insurers
• Innovate solutions to strategic problems of
  health industry

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The Market for Actuarial Services

• Financial Services / Banking
• In its infancy, multi-disciplinary approach
  essential
• General Insurance / Life Insurance
• Management / technical actuarial differential is
  emerging
• General insurance still growing in both areas
• Life insurance technical actuarial demand not
  growing
• Superannuation
• Demand killed by over-regulation and change in
  funding and delivery mechanisms

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The Market for Actuarial Services

• Outside financial services
• Much potential, but again multi-disciplinary
  approach is the key
• Operational rather than financial risks
  predominate
• Economic value-add still needs appropriate
  capital management and risk-adjusted performance
  measurement techniques
• Outside Australasia
• Huge potential in emerging Asian financial
  services markets
• Global dimension is essential (US/UK expertise is
  respected)
• PwC are the actuarial practice best placed in
  both global and regional service delivery

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General Insurance focus - Valuation

• Valuation of portfolios
• Past experience as a predictor of future
  experience
• Consideration of broad economic conditions
• Knowledge of the industry
• Monitoring
• Actual versus Expected
• New South Wales WorkCover
• Legislation changes
• Claim frequency
• Payments

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General Insurance focus - Appraisal

• Valuation of companies for float/sale
• Appraisal value intrinsic value goodwill
• Intrinsic value is easiest to calculate
• Goodwill is a bit more difficult
• Common approach uses DCF model
• New business / retention rates
• Required returns on capital / capital allocation
• Future environmental impacts (legal, economic,
  political etc)
• Insurance cycle
• Time horizon

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Completely different stuff

• Ministry of Education Wellington, New Zealand
• Valuation of Student Loan portfolio
• Data investigation
• Determining repayment patterns
• Determining borrowing patterns
• Transitions models

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Your actuarial career
PwC
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Actuarial careers at PricewaterhouseCoopers
Actuarial

• Combine the largest consulting firm and the
  fastest growing actuarial practice...
• Continued innovation, breaking new ground for
  actuaries and clients
• Exciting, challenging and varied careers

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Actuarial careers at PricewaterhouseCoopers
Actuarial

• Local, regional and global career opportunities
• Flexible career model
• Coaching model aimed at your development
• Appropriate work / life balance at all points on
  the career path
• Competitive remuneration commensurate with goals
  and responsibilities

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The road to qualification

• Support from a vast array of specialist people
  from all of our practice areas
• Generous study leave entitlements to maximise
  your potential

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For Further Information

• Visit our websites
• PwC Global website www.pwcglobal.com
• PwC Actuarial website www.pwcactuarial.com
• Contact me
• anna.dayton_at_au.pwc.com

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Questions
PwC
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