Asset Liability Management and Principles of Finance

This seminar is an opportunity for CAS members to become reacquainted with the principles of finance, and to explore more advanced financial topics, including asset-liability management. More specifically, our agenda tentatively includes the following items:

• Principles of Finance
• Key concepts
• Overview of financial models and techniques, e.g.,
• Risk-return considerations
• Capital asset pricing model
• Discounted cash flow analysis
• Internal rate of return
• Option pricing model
• Applications of financial models to insurance pricing
• Financial Risk Management
• Duration and convexity
• Derivatives and their uses for insurers
• Asset-Liability Management
• Issues and techniques
• Assets-distribution and investment policy / performance
• Liabilities-measuring the duration of loss reserves
• Capital/Surplus management-measurement and allocation
• Other Advanced Topics
• Modeling financial and economic series
• Others possible if time allows

In addition, there will likely be one or more brief projects or exercise sets, allowing hands-on activity and greater depth of understanding.