Description: This article provides a formulaic method of comparing unit reserves on different valuation bases. This enables a duration-by-duration comparison of the components of the calculation on two different valuation bases. This can be done ignoring taxes or assuming taxes are recognized in calculating the expected return on capital in pricing.

Description: The author, from the United Kingdom, as a member of the Institute’s working group that devised LAN, the Linear Actuarial Notation. The author notes this article is a supplement to The actuary’s ‘IAN, LAN & CAN’ article in the November 1980 issue. The article discusses this actuarial notation system, designed for use in the computer age.

Description: The 1977 introduction of Average Indexed Monthly Earnings into the U.S. Social Security benefit formula makes it necessary to seek new ways to estimate the Primary Insurance Amount - the author proposes a formula for this estimate.

Description: The author notes: ‘as actuaries familiar with computers are thoroughly aware, the Halo notation the century-old life contingencies system we all learned as students has to be “linearized” strung out in a straight line for computer programming.’ This article describes a linearized notation that the author has used successfully for several years, for programming use only.

Description: Insurance companies use derivatives to manage and mitigate risks that are inherent in their investment or liability portfolios, including traditional asset/liability matching, dynamic hedging and static hedging. The authors explore how Solvency II will influence life insurers’ hedging strategies.

Description: According to the book 'The Limits to Growth' by Dennis L. Meadows et al., exponential population growth is the looming cause of five major trends of global concern- accelerating industrialization, increasing population pressure, rapid disappearance of unused arable land, depletion of non-renewable resources, and a deteriorating environment. Can disaster be avoided? The author of this article suggests that since actuaries are self-styled futurists, using our mathematical skills to define, analyze, and solve complex business and social problems, we should not be left behind on this one.

Description: Math puzzles highlighting mathematical oddities.

Description: Discussion of the skills actuaries need going forward to be successful, and hence, incorporated into the new actuarial exam syllabus.

Description: Author describes how he developed graduated policy-year withdrawal rates using crude withdrawal data that was available by calendar duration but that also was distorted by reporting lags.