Errol Cramer, FSA 1984, MAAA

Chief Actuary, Allstate Financial Group, Northbrook, IL

Brief description of the type of work you currently do:

Responsible for financial reporting and analysis, capital management, forecasting and economic capital, M&A, tax support, product support, and company's actuarial career development program. On company's Reinsurance, Asset Liability and Reserve Committees.

Primary Area of Practice:

Financial Reporting

Other Areas of Practice / Interests:

Capital, Investments, Life Products, Reinsurance

Professional Background:

Allstate Financial Group since 1984. Chief Actuary of Allstate Financial past 10 years having previously held positions as Corporate Actuary and Director of Valuation. General management of actuarial staff and member of the company's executive leadership team. I have been directly involved in significant growth of the company over almost half its 50 years life. This includes all merger and acquisition (M&A) deals of the company over the past 24 years including the initial public offering (IPO) spin off of Allstate from Sears in 1993, divestiture of non–core businesses and strategic reinsurance and capital funding structures. Responsible for strategic expense control by integration of actuarial financial functions and implementation of major technology solutions. Manage or advise on all aspects of financial reporting and regulatory filings including state, SEC and tax financial and product issues. Work with Finance and Legal in managing relations with auditors and regulators. Serve as Appointed Actuary for Allstate Life and manage Appointed Actuaries for the life subsidiaries. Consult on new products and have governance over risks and capital requirements. Manage experience analyses and financial modeling. Currently implementing economic framework process for the company. Past international experience includes managing actuarial services for the Canadian life subsidiary and active in start up of Asian operations (Japan and Korea). Consulting actuary in Chicago office of what is now Towers Perrin 1982 to 1984. Product development, M&A, financial reporting, audit and litigation. Pension actuary with Liberty Life, South Africa, 1979 to 1981. Pension and benefits, investments and product design.

Volunteer Experience:

• Past board member of the Society of Actuaries. As board member served on the Audit Committee and implemented new audit procedures as chair of the committee. Also, served as board member responsible for Financial Reporting Section and actively participated in seeking out research projects and awarding grants, and in setting out seminar programs. Served on the Valuation Actuary Symposium planning committee and chaired for many years. Also, active in promoting idea of Chief Actuary's Forum and chaired for a couple of years. Worked with the Society in initiating idea for the newly formed Experience Studies Advisory Group to manage and direct priorities for the large amount of experience studies projects currently underway.

 

• Member of American Council of Life Insurers (ACLI) Deputies Group for Principal Based Approach. This group is comprised of chief actuaries actively working to promote the concept of principle based approach to reserves and capital in a manner that can gain life insurance industry support. Activities include reaching out to company CEOs, commissioners and regulatory actuaries. Long standing member of ACLI Actuarial Committee handling regulatory actuarial issues.

 

• Member of American Academy of Actuaries (AAA) Life Financial Reporting Committee including past chair for many years. As chair served as liaison with AICPA and member of AAA delegation meeting with SEC and PCAOB. Prior activities included original member of joint AAA/ACLI group formulating Risk Based Capital (RBC), and of group formulating Interest Maintenance Reserve and Asset Maintenance Reserve (IMR & AVR) for statutory reporting.

Vision Statement:

• Our key advantage is our high intellectual stock with a strong demand for our services and a general shortage of actuaries in many markets. One telling mark is that the majority of actuaries now work in consulting. While this is a favorable situation to be in, the challenge we face as a small profession is the need to continually work at maintaining our relevancy. We need to expand our footprint on the business world and grow our numbers by attracting and training high quality candidates. Specific action plans include the following: Vigorously continue the Society's efforts in promoting the actuary brand. This has been highly successful in better positioning us with employers and attracting high quality candidates. Given our small numbers and limited exposure, we need to be careful not to give away inroads made.

 

• Deliver on the brand image. The current exam syllabus provides proficiency in basic actuarial skills. As professionals we need to provide higher level business value through insightful decision making and versatility. The Society's Value Ladder is a step in this direction; however, a concerted strategic effort is needed to provide MBA–type training and mindset for both students and actuaries.

 

• Keep our business leaders in the fold. We need to ensure delivery of continuing professional development (CPD) opportunities to CEOs or senior business professionals who may feel too busy to meet the Society's new requirements. We can not afford to disenfranchise our most accomplished actuaries.