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Higher Diploma in Actuarial Science
Since 2003 the Dept. of Statistics and Actuarial Science has offered a postgraduate higher diploma in Actuarial Science (H.Dip.Act.Sc). This course, the first of its kind in Ireland, enables graduates from quantitative disciplines (other than Actuarial Science) to study for and obtain exemptions from many of the Core Technical professional exams of the Institute and Faculty of Actuaries, UK.
This Higher Diploma will appeal to those with a solid quantitative background who now have the intention of entering the actuarial profession and who wish to expedite the qualification time necessary to become an Actuary. Students will select, subject to previous study and approval of the programme director, various subjects in Actuarial Statistics, Mathematics, Finance and Economics.
The Higher Diploma in Actuarial Science is a one year full-time diploma and is held at University College Dublin, Belfield.
Exams are taken at the end of each semester in December and May. Each student, depending on background and subject to approval by the programme director, selects (at least) 5 of the following 8 Subjects (a Subject may be composed of more than one module). The corresponding Core Technical professional examination of the Institute and Faculty of Actuaries are shown in brackets.
Financial Mathematics (CT1)
Finance and Financial Reporting (CT2)
Probability and Mathematical Statistics (CT3)
Actuarial Models (CT4)
Actuarial Contingencies (CT5)
Applied Actuarial Statistical Methods (CT6)
Economics (CT7)
Financial Economics (CT8)
Since September 2009 the Higher Diploma in Actuarial Science has been accredited by the Institute and Faculty of Actuaries (UK). Students may be awarded block exemptions from their chosen Subjects based on the weighted average of their performance in their chosen Subjects. If the weighted average of their performance in their chosen Subjects is greater than or equal to the accreditation standard required by the Institute and Faculty of Actuaries (UK), then students may be awarded exemptions from the corresponding Core Technical professional exams.
Subject-by-Subject exemptions are available for students who do not achieve the overall accreditation standard required for block exemptions. The standard required for individual Subject exemptions will vary between Subjects and from year to year but will typically be that required for a good honours grade in the Subject.
Course Structure and Examination Regulations
Students must pass each of the 5 Subjects they have selected for the programme and attain at least 60 ECTS credits. In the case where a student has selected more than 5 Subjects, the student must pass at least 5.
Entry Requirements for Academic Year 2010/2011
Applicants will normally be expected to have a very good foundation in mathematics and/or statistics, and should have a 2.1 honours degree in a quantitative area such as mathematics, statistics, computer science, engineering, or economics and/or finance.
Application procedure
Applications should be made to Programme Director, Ms Mary Hall, FIA, FSAI, Higher Diploma in Actuarial Science, School of Mathematical Science, Library Building, UCD, Belfield, Dublin 4 (tel. 353-1-7167626). Closing date for receipt of applications is the 30th June in the year for which entry is sought. Applications from overseas graduates should be made as early as possible, and not later than 30th April of the year of entry. Click here to apply.
Assessment:
The course is examined in December and May. Students must pass all examinations within two years of registering for the Higher Diploma.
Standards:
The Higher Diploma in Actuarial Science may be awarded with or without honours. The honours classifications are First Class Honours, Second Class Honours grade 1 and Second Class Honours Grade 2 with classification based on programme GPA. Further details on UCD award classifications can be obtained from: www.ucd.ie/registry/academicsecretariat/pol_regs.htm
Funding:
No funding is available from the university for students taking this course.
Fees:
For information on fees see www.ucd.ie/fees/
Language:
English is the working language and students whose first language is not English will be required to provide evidence of competence in English (minimum score 550 TOEFL or 6.0 IELTS)
General Information:
Useful information for students coming to University College Dublin for the first time is available from the university’s website at www.ucd.ie/newstudent
H. Dip. Actuarial Science Subject Details:
1 - Financial Mathematics
Mathematical applications of the following: Theory of interest rates. Basic compound interest functions and equations of value. Annuities certain. Nominal rates of interest. Discounted cash flow and measures of investment performance. Capital redemption policies. Valuation of securities. Effect of income and capital gains taxes. Introduction to stochastic interest rate models.
2 - Finance and Financial Reporting
Financial Accounting
Introduction to the context of accounting. Elements of financial statements. The balance sheet. The profit and loss account. Recording transactions. Fixed assets. Current assets, stock, debtors. Liabilities and sources of capital. The accounting regulatory framework. Cash flow statements. Financial information analysis.
Finance
Joint stock company. Principles of taxation. Present values and wealth. Investment appraisal. Value additivity. The cost of capital. Portfolio theory. Risk versus return. Sources of finance. Agency theory. Gearing. Capital structure. Dividend decision. Financial analysis and planning. Working capital management. Valuation of options. Mergers and takeovers. International financial management. Valuation of companies.
3 - Probability and Mathematical Statistics
Statistical Theory
Probability Theory. Combinatorics. Random variables: univariate, bivariate and multivariate. Moment generating functions. Functions of a random variable. Standard probability laws. Estimation Theory. Law of Large Numbers. Chebyshev Inequaltity. Central Limit Theorem. Methods of Moments and Maximum Likelihood. Point and Interval Estimation. Hypothesis Testing. Neyman Pearson Lemma. Likelihood Ratio Tests. Bayesian Statistical Inference. Poisson and Branching Processes.
Linear Regression and ANOVA
The single linear regression model. Inferences based on regression and correlation. Model adequacy. Single and two factor ANOVA. Multiple comparisons.
4 - Actuarial Models
Models – Survival Models
Survival models. Estimating the lifetime distribution FX(t). The Cox regression model. Markov models. Graduation and statistical tests. Exposed to risk.
Models – Stochastic Models
Principles of modelling. Main classes of stochastic processes. Markov chains. Markov jump processes. Monte Carlo simulation.
5 - Actuarial Contingencies
Select mortality. Life insurance and sickness contracts. Gross premiums and reserves. Discounting emerging cost techniques. Asset shares. Guarantees under life insurance contracts. Factors affecting mortality. Population projection. Valuation of benefits.
6 - Applied Actuarial Statistical Methods
Actuarial Statistics:
Decision theory. Loss distributions. Run off triangles and experience rating systems. Introduction to generalised linear models. Risk models. Ruin theory. Bayesian statistics. Credibility theory.
Time Series
Characteristics of Time Series. Autocorrelation and cross-correlation function. Stationary Time Series. Autoregressive and moving average processes. Nonstationary time series. Model specification and estimation. Model diagnostics. Forecasting. Seasonality, Multivariate Models, Cointegration Models, Applications of Time Series Models in Investment.
7 – Economics
Principles of Macroeconomics
National income accounting, introduction to models of income determination, money, banking and credit, international economic relations, monetary and fiscal policy. Introduction to quantitative methods and their applications in economics.
Principles of Microeconomics
The price system, theory of the firm, factors of production and their markets. microeconomic policy.
8 - Financial Economics
Utility theory. Stochastic dominance. Measures of investment risk. Portfolio theory. Asset liability modelling. The efficient markets hypothesis. Introduction to the valuation of derivative securities. The Black-Scholes analysis and arbitrage free pricing. Numerical procedures used in derivative pricing and valuation. |
