The Drake University Actuarial Science Program, Kelly Insurance Center And

The Drake University Actuarial Science Program, Kelly Insurance Center and PricewaterhouseCoopers

presents:

A Roundtable Discussion of Solvency II

Monday, April 4th, 2011
9:00am - 2:00pm with lunch provided
Drake University Campus/Olmsted Center

Solvency II is a fundamental review of the capital adequacy regime for the European insurance industry designed to establish a revised and updated set of European capital requirements and risk management standards.

However, Solvency II addresses more than capital adequacy, it weaves the wider components of governance, risk control and risk management into its framework. The impacts of this regulatory change are being felt beyond the European region. Many US companies with EU subsidiaries or parent groups are also feeling the effects and have projects underway to deal with group restructuring, economic capital model development and risk management processes improvements. In addition, rating agencies, local regulators and other stakeholders are placing increased focus on enterprise risk management and economic capital modeling to understand insurance businesses.

This roundtable will discuss these developments with representatives from Drake University, Principal Financial Group, Aviva USA, the National Association of Insurance Commissioners (NAIC), New York Life, AEGON, Milliman, Clear Lake Bank & Trust Co, and PricewaterhouseCoopers.
Registration is required for this no-charge event. To register, please contact:

Amber J. Johnson at or (312) 298-3771.

You can also register online at www.meetpwc.com/drakeroundtable

We look forward to having you join us on April 4!

Agenda

Morning

8:00 – 8:30 Breakfast

8:30 - 9:00 Registration and Coffee
9:00 – 9:15 Introduction/Welcome/Opening Remarks

Charlie Edwards, Dean, Drake University.

Thomas Struppeck, Professor of Actuarial Science, Drake University - Moderator introduction

9:15 -10:45 Brian Paton, Jim Landis, PWC Educational Session

The basics of an operational risk management (ORM) framework: While SII provides limited guidance on operational risk measurement, there are strong connections between a robust ORM program and the ORC (Operational Risk Capital) component of SCR (Solvency Required Capital)

10:45 - 11:00 Break
11:00 - 11:30 Terri Vaughan, CEO, NAIC - A U.S. Perspective
11:30 – 12:00 Q & A

Lunch/Afternoon

12:00 – 1:30 Lunch/ Speaker – Jim Wallace, CEO & President, GuideOne Insurance Company

1:30 – 1:45 Break

1:45 – 3:30 Roundtable/panel discussion

Panel Members

Mark Hewitt – President & CEO, Clear Lake Bank & Trust Co, Board Member, Federal Reserve Bank of Chicago
Mark Hewitt has been President and CEO of Clear Lake Bank & Trust Co. in Clear Lake, IA since 1998. Additionally, he was elected to the Board of Directors of the Federal Reserve Bank of Chicago in 2008 and reelected to a 3 year term beginning in 2011. Before joining Clear Lake Bank & Trust, Mr. Hewitt spent 8 years with Wells Fargo Bank in Des Moines, managing the Corporate Banking Department. His other experience includes a total of 5 years with U.S. Bank and the Northern Trust Co.

Dana Hunt, FSA, MAAA - VP, Economic Capital & Solvency II - Aviva USA
As Vice President of Economic Capital and Solvency II for Aviva USA, Dana is responsible for implementing the Solvency II program. This multi-year project will enhance the economic capital calculations, deliver more transparent reporting and embed into the decision making framework for the U.S. business. Previously, Dana established economic capital pricing metrics as AVP of Individual Life Pricing at Munich Re. She was Head of Financial Reporting at ING Re where she was responsible for calculating embedded value and economic capital.

Jim Landis, CIA, CISA, CCP, FLMI, MBA, Director - PricewaterhouseCoopers
Jim is a Director in our Risk Assurance group, based in Iowa and focusing on the Iowa insurance and financial services practice. He recently joined PwC from a global insurer where he served sixteen years in a variety of roles, most recently as Director, Operational Risk and Internal Control. His group collaborated with business units and risk management professionals across the U.S., Canada and Latin America to build an operational risk program in support of Solvency II implementation. Jim and team helped establish the governance, internal control and project management frameworks necessary to support SII related operational risk capital calculations, including the development of operational risk profiles, key risk indicators, risk appetite measurements, loss reporting and scenario analysis. Jim previously served as Assistant Director, Corporate Internal Audit and as Senior Vice President, Operations and Accounting in the insurer's asset management unit. His thirty-year career in back-office operations, finance, auditing and information systems included positions at leading banks, insurers, manufacturing firms and the United States Air Force.

Brian Patton, B.Sc., FFA, Director - PricewaterhouseCoopers

Brian is a qualified actuary from the UK with over 20 years of life experience as a consultant with PwC and in the life industry. He is now based in PwC's Chicago office and specializes in Solvency II, insurance company risk management and financial reporting. As a consultant he has worked with many companies on their Solvency II implementation projects both in Europe and the US. In particular he has assisted companies on the use of internal models and how they integrate to risk management. He has performed interim risk management and financial reporting roles to assist companies develop new functions. Before moving to the US Brian provided technical and project support to the European CFO Forum in their development of market consistent reporting. Prior to joining PwC, Brian was Head of Actuarial Reporting for a large UK bancassurer and was responsible for production of embedded value, UK GAAP, local regulatory, IFRS and USGAAP results for the five life companies.

Mark R. Shapland, FCAS, ASA, MAAA - Milliman

Mark is a consultant with the PCIS group in the Atlanta office of Milliman. He joined the firm in 2003, after 24 years of experience at insurance companies and other consulting firms. Mark's area of expertise is property and casualty insurance, particularly pricing, reserving, individual risk and association-type dividend plans and premium rates for large accounts, reinsurance, data management, and dynamic risk modeling. Mark has international experience, having worked in Europe for four years, as well as shorter assignments in many other countries. He has significant management experience as chief actuary for two different insurance companies. He was a key member of a team that created an executive training program based on computer simulations.

Joel Steinberg, FSA, MAAA, Chief Actuary - New York Life

Joel is Senior Vice President and Chief Actuary for New York Life Insurance Company, where he is responsible for oversight over the actuarial functions across the Company, including the determination of economic capital, product pricing, financial reporting, embedded value reporting and reinsurance. He joined New York Life in 1983, immediately out of college, and has previously held various positions, including head of domestic life insurance pricing and chief financial officer of the domestic life and annuity businesses. Joel received a B.A. degree in Mathematics from the University of Pennsylvania.

Thomas Struppeck, Ph.D., FCAS, ASA, Professor of Actuarial Science - Drake University

Tom joined the Drake faculty in the fall of 2010 as the Robb B. Kelley Distinguished Visitor in Risk Management. He is currently on leave from the mathematics department of the University of Texas at Austin. Tom is a fellow of the Casualty Actuarial Society and serves as their General Officer for exams 3 and 4. Before returning to teaching, Tom worked as an actuary in Dallas, Switzerland, and New York. His most recent assignment was as head of modeling for a French-based bond insurer.

Terri Vaughan, CEO - National Association of Insurance Commissioners (NAIC)
Dr. Terri Vaughan was named the CEO of the National Association of Insurance Commissioners (NAIC) in February 2009. As CEO, Terri oversees the operations of the NAIC in its efforts to support U.S. insurance regulation and serves as the NAIC’s chief spokesperson in Washington. Prior to her current position, Terri was the Robb B. Kelley Distinguished Professor at Drake University, where she focused on the regulation and management of financial institutions. From 1994 to 2004, she was the Iowa Insurance Commissioner. Terri was the longest serving commissioner in Iowa’s history and served under the administrations of both major parties. She was named NAIC President in 2002.

Jim Wallace, CEO & President, GuideOne Insurance Company.

Jim is currently Chairman, President and CEO of GuideOne Insurance. Before joining GuideOne in 2001, he served as President and CEO of National Travelers Life for five years. From 1977 to 1996 he worked for Ernst and Young, ultimately becoming Partner and Director of Insurance Services for the Eastern half of the US.

Darrin Zimmerman, FSA, MAAA, SVP and CRO for Transamerica Capital Management (the annuity division of AEGON USA)
Darin Zimmerman has over 20 years of insurance industry experience. During his last eight years he has worked in three different divisions of AEGON, but all have kept him connected with AEGON’s efforts to develop market consistent valuation methods for insurance liabilities. AEGON’s Market Consistent Strategy (“AeMcS”) will eventually have four main uses: 1) internal risk/ERC; 2) Embedded value; 3) Solvency II / regulatory reporting; and 4) External Financial Reporting (IFRS/GAAP). Darin’s involvement in AEGON’s development and implementation of a Sarbanes-Oxley compliant control environment is also helping in the development of Solvency II’s Internal Model Development and Validation (“IMDV”) requirement.
Randi Woods, FSA, MAAA, CERA, VP, Chief Risk Officer & Chief Actuary - Principal International, Inc. (a wholly-owned Subsidiary of the Principal Financial Group)
Ms. Woods has significant experience in the financial and risk management facets of the actuarial. Among her current responsibilities, she leads the international actuarial staff based in Brazil, Chile, Hong Kong and Mexico. She also leads all capital management and ERM functions within Principal International.

CPE
Participants attending will earn 3 CPE Credits
Learning Objectives: Understand the Solvency II
Target Audience: Actuaries, CFOs, Controllers
Course Level: Intermediate
Delivery Method: Group Live
Advanced Preparation: None
Cost: No Charge

Directions to Campus/Parking

Directions to the Drake campus and Olmsted Building are located at www.drake.edu. Click on “Visitors and Media” for maps. Secure visitor parking is available in the lot labeled #54 on the interactive campus map.