Apollo
What is Apollo?
Apollo is a reserving application which actuaries use to complete reserve studies
Who is AIG's CEO
Eric Andersen
Insurers Management
Investors
Regulators
What are two reserving methods?
Development Method
Bornhuetter-Ferguson Method
Cape Cod Method
Expected Loss Ratio Method
Frequency / Severity Methods
What does IBNR stand for?
Incurred but not reported
Who is the head of Apollo?
Quincy Clare-King
Who founded AIG?
Cornelius Vander Starr
Who determines the booked reserves on our financial statements?
----guiding by actuarial indications
What is PYD (prior year development)?
Change in estimates of ultimate cost from this year's reserve study compared to last year's reserve study
How are trends determined and selected?
Empirically fit against the data
External Industry Sources
Why use Apollo?
Studies and results are in a standardized format
Apollo calculates methods and has several automated functions
What was AIG's original name?
American Asiatic Underwriters
Difference between booked and indiated reserves is called what?
Management Position
What situations or reasons would be attributed to using different methods?
LOB
Maturity of particular accident year
Availability / Volume of Data
What are the three components that make up ultimate loss?
Paid Loss
Case Reserves
IBNR
Who created Apollo?
AIG
What was the name of the Life and Retirement Insurance company that AIG IPO-ed in 2022?
Corebridge Financial
What are the two components mentioned that make up total reserve?
Case Reserves - Claims Team
IBNR - Actuarial Team
What are three business units that reserving actuaries work closely with?
Pricing Actuaries
Claims
Management
Accounting
Finance
Underwriting
If given estimated ultimate loss and payments to date, how would we calculated the total reserve?
Ultimate Cost - Payments to Date = Total Reserve
What year did Apollo begin devleopment?
2018
What is AIG's global rank among P&C insurers by NPW
16th
What is one key metric that regulators look at to monitor solvency?
Surplus
Asset to Liability Ratios
What are two types of loss trends? (bonus points for remembering the formulas)
Severity - Ult Loss / Claim Counts
Frequency - Claim Counts / Exposure
Loss Cost - Freq * Sev
Explain impacts if a company is over-reserved?
Opportunity cost
Overly conservative reserve estimates can lead to holding excess capital