The following list is of suggested reading for each of the Specialist Applications subjects. Students will find it useful to consult some of the material to obtain a different viewpoint when studying a particular topic. However, students are not expected to have read all of the items on the list for their chosen subject.

All books are available to borrow from the libraries. Request items by email from libraries@actuaries.org.uk or order direct via the online library catalogue.

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SA1 | SA2 | SA3 | SA4 | SA5 | SA6

Subject SA1: Health and Care Specialist Applications

• The financial press and weekend supplements
• The trade press, particularly those which specialise in health and care
• The bulletins and other publications from reinsurers
• Papers from the Institute and Faculty of Actuaries
• Bulletins from the Continuous Mortality Investigation
• Presentations made at recent annual Faculty and Institute Healthcare Conferences
• Other recommended references on the Health and Care pages

Subject SA2: Life Insurance Specialist Applications

Analysing movements in realistic balance sheets for with-profits funds. Coulthard, P. J. A.; Parkes, A. R. SIAS, 2004. 70 pages.

Asset shares and their use in the financial management of a with-profits fund. Needleman, P. D.; Roff, T. A.
BAJ (1995) 1(4): 603-688.

The cost of capital for financial firms. Exley, J.; Smith, A. D.
BAJ (2006) 12(1): 229-301.

Current developments in embedded value reporting. O'Keeffe, P. J. L.; Desai, A. J.; Foroughi, K. et al
BAJ (2005) 11(3): 407-496.

Effective decision making in a life company. Iqbal, I.
BAJ (2005) 11(1): 133-182.

Financial aspects of longevity risk. Richards, S. J.; Jones, G. L. SIAS, 2004. 58 pages.

Financial services and investment markets in a low inflationary environment. Nowell, P. J.; Crispin, J. R.; Iqbal, I. et al
BAJ (1999) 5(5): 851-897.

Lessons from closure: an analysis and comparison of the issues facing closed life funds and closed pension schemes. Campbell, A. C.; Grimley, D. C.; Pallister, J. K. et al Faculty and Institute of Actuaries, 2006. 73 pages.

Living with mortality: longevity bonds and other mortality-linked securities. Blake, D.; Cairns, A. J. G.; Dowd, K.
BAJ (2006) 12(1): 153-228.

Longevity in the 21st century. Willets, R. C.; Gallop, A. P.; Leandro, T. et al
BAJ (2004) 10(4): 685-832, 878-898.

A market-based approach to pricing with-profits guarantees. Hare, D. J. P.; Dickson, J. A.; McDade, P. A. P. et al
BAJ (2000) 6(1): 143-213.

Market consistent valuation of life assurance business. Sheldon, T. J.; Smith, A. D.
BAJ (2004) 10(3): 543-626.

Measuring and managing the economic risks and costs of with-profits business. Hibbert, A. J.; Turnbull, C. J.
BAJ (2003) 9(4): 725-786.

Notes on options, hedging, prudential reserves and fair values. Wilkie, A. D.; Owen, M. P.; Waters, H. R.
BAJ (2005) 11(2): 199-312.

The Penrose Report. A discussion meeting held by the Institute of Actuaries. Abstract of the discussion. [Report of the Equitable Life Inquiry]
BAJ (2004) 10(5): 1047-1070.

Reinventing annuities. Wadsworth, M. J.; Findlater, A. J. M.; Boardman, T. V. SIAS, 2001. 77 pages.

A review of policyholders' reasonable expectations. Shelley, M.; Arnold, M.; Needleman, P. D.
BAJ (2002) 8(4): 705-755.

Twin peaks. The enhanced capital requirements for realistic basis life firms. Muir, M. J.; Waller, R. M. SIAS, 2003. 46 pages.

Subject SA3: General Insurance Specialist Applications

The actuarial practice of general insurance. Hart, D. G.; Buchanan, R. A.; Howe, B. A. Institute of Actuaries of Australia, 2001. 6th ed. 592 pages. ISBN: 0858130556.

Advisory note on Lloyd's US opinions. General Insurance Board. Faculty of Actuaries and Institute of Actuaries, 1999. 14 pages.

Aspects of pricing in the London Market. Sanders, D. E. A.; Hitchcox, A. N.; Manjrekar, R.
BAJ (1998) 4(3): 427-483.

A change agenda for reserving. Report of the General Insurance Reserving Issues Taskforce (GRIT) Jones, T.; Copeman, P. J.; Gibson, L. R. et al Faculty and Institute of Actuaries, 2006. 165 pages.

The cycle survival kit. An investigation into the reserving cycle and other issues. (Cardiff Convention) Archer-Lock, P. R.; Fisher, S.; Hilder, I. M. et al
2003 General Insurance Convention (2003) 103-145.

Fair value accounting: implications for general insurers. Leigh, J. C. T. SIAS, 2004. 46 pages.

Foundations of casualty actuarial science. Casualty Actuarial Society. CAS, 2001. 4th ed. 817 pages. ISBN: 0962476226.

GRIP - General Insurance Premium Rating Issues Working Party [report] Anderson, D.; Bolton, C. G.; Callan, G. L. et al 2007. 189 pages.

Lloyd's: post reconstruction and renewal. White, P. FT Financial Publishing, 1997. 172 pages. ISBN: 1853347450.

Loss reserves in the London Market. Maher, G. P. M.
BAJ (1995) 1(4): 689-760.

The management of losses arising from extreme events. (Paris Convention) Sanders, D. E. A.; Brix, A.; Duffy, P. et al
2002 General Insurance Convention (2002) 2: 1-257.

Quantifying operational risk in general insurance companies. Tripp, M. H.; Bradley, H. L.; Devitt, R. et al
BAJ (2004) 10(5): 919-1026.

Risk-based capital in general insurance. Hooker, N. D.; Bulmer, J. R.; Cooper, S. M. et al
BAJ (1996) 2(2): 265-323.

UK asbestos - the definitive guide. Lowe, J. A.; Gravelsons, B. P.; Hawes, W. et al
2004 General Insurance Convention (2004) 135-354.

The valuation of general insurance companies. Ryan, J. P.; Larner, K. P. W.
JIA (1990) 117: 597-669.

World Trade Center (WTC) Working Party Paper. Gibson, L. R.; Badal, V.; Harding, R. J. et al Faculty and Institute of Actuaries, 2002. 21 pages.

Subject SA4: Pensions and other Benefits Specialist Applications

Actuarial implications of the changes in ACT rules and the corporation tax rate. Faculty of Actuaries; Institute of Actuaries. 1997. 22 pages + appendices.

Actuaries, pension funds and investment. Arthur, T. G.; Randall, P. A.
JIA (1990) 117: 1-49.

Allowing for the sponsor covenant in actuarial advice Final report. Sponsor Covenant Working Party. Faculty and Institute of Actuaries, 2005. 40 pages.

A central discontinuance fund for pension schemes. Black, J. M.; Booth, G.; Cooper, D. R. et al. SIAS, 1999. 34 pages.

Continuing care retirement communities - attractive to members, but what about sponsors? Humble, R. A.; Ryan, D. G.
BAJ (1998) 4(3): 547-614.

The effect of demographic factors and indexation on the long term financing of the state earnings-related pension scheme. Daykin, C. D.; Young, A. G.
Journal of the Institute of Actuaries Students' Society (1987) 30: 181-198.

Extending retirement choices. Retirement income options for modern needs. Retirement Choices Working Party. Faculty of Actuaries and Institute of Actuaries, 2001. 39 pages.

The financial theory of defined benefit pension schemes. Exley, J.; Mehta, S. J. B.; Smith, A. D.
BAJ (1997) 3(4): 835-966.

Guidance for trustees. The Pensions Regulator, 2005. 64 pages.

Guidance notes 3, 4, 13, 34, 36 and 51. Board for Actuarial Standards.

Guidance notes 24 and 48. Professional Standards Directory. Faculty and Institute of Actuaries.

Investment and occupational pensions. The Profession's initial response to the Myners Review of Institutional Investment in the United Kingdom.. Faculty of Actuaries and Institute of Actuaries, [2001]. 8 pages.

Liability driven benchmarks for UK defined benefit pension schemes. Chambers, A. J.; Barnes, A. E.; Barnes, M. et al. 2005. 56 pages.

Longevity in the 21st century. Willets, R. C.; Gallop, A. P.; Leandro, T. et al.
BAJ (2004) 10(4): 685-832, 878-898.

Matching and portfolio selection: Part 1. Wise, A. J.
JIA (1987) 114: 113-133.

Matching and portfolio selection: Part 2. Wise, A. J.
JIA (1987) 114: 551-568.

The matching of assets to liabilities. Wise, A. J.
JIA (1984) 111: 445-501.

A note on pension scheme design issues. Faculty of Actuaries Pensions Research Group. 2002. 10 pages.

Note on the relationship between pension assets and liabilities. Speed, C. A.; Bowie, D. C.; Exley, J. et al. SIAS, 2003. 26 pages.

Objectives and methods of funding defined benefit pension schemes. McLeish, D. J. D.; Stewart, C. M.
JIA (1987) 114: 155-225.

The Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations 1996. SI 1996 No.1536. Department of Social Security. HMSO, 1996. 34 pages. ISBN: 0110548523.

Pension fund asset valuation and investment. Dyson, A. C. L.; Exley, J.
BAJ (1995) 1(3): 471-557.

Pension fund valuations and market values. Head, S. J.; Adkins, D. R.; Cairns, A. J. G. et al.
BAJ (2000) 6(1): 55-141.

Pension funding and expensing in the minimum funding requirement environment. Greenwood, P. M.; Keogh, T. W.
BAJ (1997) 3(3): 497-582.

Pensions and low inflation. Meredith, P. M. C.; Horsfall, N. P.; Harrison, J. M. et al.
BAJ (2000) 6(3): 547-619.

Pensions and the ageing population. Jollans, A. SIAS, 1997. 34 pages.

Pensions, funding and risk. Chapman, R. J.; Gordon, T. J.; Speed, C. A.
BAJ (2001) 7(4): 605-686.

The price of actuarial values. Gordon, T. J. SIAS, 1999. 35 pages.

A realistic approach to pension funding. Thornton, P. N.; Wilson, A. F.
JIA (1992) 119: 229-312.

Reinventing annuities. Wadsworth, M. J.; Findlater, A. J. M.; Boardman, T. V. SIAS, 2001. 77 pages.

Review of pensions. Submission from the Institute and Faculty of Actuaries. [1997]. 6 pages.

Risk budgeting in pension investment. Urwin, R. C.; Breban, S. J.; Hodgson, T. M. et al.
BAJ (2001) 7(3): 319-364.

The role and responsibilities of actuaries in the defined contribution environment in the United Kingdom. Stocker, M. A.; Dudley, S. D.; Finlay, G. E. et al.
BAJ (1999) 5(4): 763-800.

The role of high yield corporate debt in pension schemes. Sweeting, P. J. SIAS, 2002. 54 pages.

The role of the state in pension provision. Abstract of the debate.
BAJ (1998) 4(5): 931-967.

The role of the state in pension provision. Papers for the debate at Staple Inn, 23 March 1998. Davies, B.; Daykin, C. D.; Arthur, T. G. et al. 1998.

The role of your actuary in your pension scheme. Faculty of Actuaries and Institute of Actuaries, 1997. 15 pages. ISBN: 0 901066 27 3.

Submission on the relationship between pension assets and liabilities. Hill, J. SIAS, 2003. 6 pages.

Transfer value payments between occupational pension schemes. Pomery, M. A.; Jones, M. J.
Journal of the Institute of Actuaries Students' Society (1978) 22: 161-216.

The treatment of assets in the actuarial valuation of a pension fund. Day, J. G.; McKelvey, K. M.
JIA (1964) 90: 104-147.

A user's guide to FRS 17. Atherton, J. E. SIAS, 2001. 28 pages.

The value of actuarial values. Pemberton, J. M. SIAS, 1998. 38 pages.

Subject SA5: Finance Specialist Applications

Journals in Finance and Investment

• Bank of England Quarterly Bulletin
• Derivatives Quarterly
• Financial Analysts Journal
• Journal of Asset Management
• Journal of Finance
• Journal of Finance and Quantitative Analysis
• Journal of Financial Economics
• Journal of Portfolio Management
• Professional Investor
• Risk Magazine

Newspapers

• The Economist
• Financial News
• Financial Times

Books

Asset pricing. Cochrane, J. H. Princeton University Press, 2005. Revised ed.  533 pages. ISBN: 0691121370.

Corporate finance. Brealey, R. A.; Myers, S. C.; Allen, F. McGraw-Hill, 2005. 8th ed.  1028 pages. ISBN: 007111551x.

Corporate finance and investment: decisions and strategies. Pike, R.; Neale, B. Financial Times Prentice Hall, 2003. 4th ed.  ISBN: 0273651382.

Derivatives. The theory and practice of financial engineering. Wilmott, Paul. John Wiley, 1998. 740 pages. ISBN: 0 471 98366 7.

Financial calculus. An introduction to derivative pricing. Baxter, M.; Rennie, A. Cambridge University Press, 1996. 233 pages. ISBN: 0521552893.

Financial economics: with applications to investments, insurance and pensions. Panjer, H. H. (ed). The Actuarial Foundation, 2001. 669 pages. ISBN: 0938959484.

Fixed-income derivatives made simple. What a trustee needs to know. National Association of Pension Funds. NAPF, 2005. 16 pages.

Fundamentals of financial management. Brigham, E. F.; Houston, J. F. Harcourt Brace, 2000. 9th ed.  959 pages. ISBN: 0030314615.

The handbook of international financial terms. Moles, Peter; Terry, Nicholas G. OUP, 1997. 605 pages. ISBN: 0 19 828885 9.

Hedge funds and funds of hedge funds made simple. What a trustee needs to know. National Association of Pension Funds. NAPF, 2005. 20 pages.

Inefficient markets. An introduction to behavioral finance. Shleifer, Andrei. Oxford University Press, 2000. viii, 216 pages. ISBN: 0 19 829228 7 0 19 829228 9 (pbk).

Investment mathematics. Adams, Andrew T; Booth, Philip M; Bowie, David C; Freeth, Della S. John Wiley & Sons Ltd, 2003. 419 pages. ISBN: 0 471 99882 6.

Management of company finance. Samuels, J. M.; Wilkes, F. M.; Brayshaw, R. E. International Thomson, 1995. 6th ed. 1040 pages. ISBN: 1861522290.

Management of company finance. Solutions manual. Samuels, J. M.; Wilkes, F. M.; Brayshaw, R. E. International Thomson, 1996. 6th ed. 243 pages. ISBN: 041271860X.

Options, futures and other derivatives. Hull, J. C. Prentice Hall, 2006. 6th ed.  789 pages. ISBN: 0131499084.

Swaps made simple. What a trustee needs to know. National Association of Pension Funds. NAPF, 2005. 16 pages.

Articles

Being actuarial with the truth. A story of economic confusion over defined benefit pension schemes. Carne, Simon A. SIAS, 2004. 48 pages.

The cost of capital for financial firms. Exley, J.; Smith, A. D.
BAJ (2006) 12(1): 229-301.

The economics of insurance - how insurers create value for shareholders. Hancock, John; Huber, Paul P; Koch, Pablo. Swiss Re, 2001. 45 pages.

The financial theory of defined benefit pension schemes. Exley, J.; Mehta, S. J. B.; Smith, A. D.
BAJ (1997) 3(4): 835-966.

Frictional costs. Ng, H. M.; Varnell, E. M. 2003. 63 pages.

Gentlemen prefer bonds. Alexander, B. London Business School, 2002.

Getting to grips with fair value. Abbink, M.; Saker, M. C. SIAS, 2002. 74 pages.

Lease terms, option pricing and the financial characteristics of property. Adams, Andrew T; Booth, Philip M; MacGregor, B D.
BAJ (2003) 9(3): 619-635.

Measuring and managing the economic risks and costs of with-profits business. Hibbert, A. J.; Turnbull, C. J.
BAJ (2003) 9(4): 725-786.

Modern valuation techniques. Jarvis, S. J.; Southall, F. E.; Varnell, E. M. SIAS, 2001. 55 pages.

Pensions and capital structure. Why hold equities in the pension fund? Ralfe, John; Speed, Cliff A; Palin, Jon.
North American Actuarial Journal (2004) 8 (3): 103-132.

Pensions and economics: the way ahead. Wise, A. J.; McCarthy, D.; Neate, J. A. et al. SIAS, 2004. 53 pages.

Pensions, funding and risk. Chapman, R. J.; Gordon, T. J.; Speed, C. A.
BAJ (2001) 7(4): 605-686.

The tax consequences of long-run pension policy Black, F
Financial Analysts Journal (1980) July-August: 21-28.

Theory of risk capital in financial firms. Merton, R. C.; Perold, A. F.
Journal of Applied Corporate Finance (1993) 6(3): 16-32

Theory of the firm: managerial behaviour, agency costs and ownership structure. Jensen, M. C.; Meckling, W. H.
Journal of Financial Economics (1976) 3(4): 305-360

Why can financial firms charge for diversifiable risk? Casualty Actuaries Society Bowles Symposium. Smith, A. D.; Moran, I.; Walczak, D. 2003.

Subject SA6: Investment Specialist Applications

Journals in Finance and Investment

• Annals of Actuarial Science
• Bank of England Quarterly Bulletin
• Derivatives Quarterly
• Financial Analysts Journal
• Journal of Asset Management
• Journal of Finance
• Journal of Finance and Quantitative Analysis
• Journal of Financial Economics
• Journal of Portfolio Management
• Professional Investor
• Risk Magazine

Newspapers

• The Economist
• Financial News
• Financial Times

Books

2004 Finance and Investment Conference. Faculty and Institute of Actuaries, 2004. 2005 Finance and Investment Conference. Faculty and Institute of Actuaries, 2005. 2006 Finance and Investment Conference. Faculty and Institute of Actuaries, 2006.

Blueprint for investment. A long term contrarian approach. FitzHerbert, R. M. Wrightbooks, 1998. 2nd ed.  210 pages. ISBN: 1875857540.

Currency management: concepts and practices. Clarke, R. G.; Ktitzman, M. P. Institute of Chartered Financial Analysts, 1996.

Equity-gilt study. BZW/Barclays Capital. Barclays Capital, 2007. ISBN: 0955317223.

Financial market analysis. Blake, D. John Wiley, 2000. 2nd ed. 721 pages. ISBN: 047187728X.

Financial Times guide to using and interpreting company accounts. McKenzie, W. FT Prentice Hall, 2003. 3rd ed.  404 pages. ISBN: 0273663127.

Fixed-income derivatives made simple. What a trustee needs to know. National Association of Pension Funds. NAPF, 2005. 16 pages.

Foreign exchange risk [in: Financial institutions management: a modern perspective]. Saunders, A. 3rd ed. McGraw-Hill, 2000. 742 pages. ISBN: 0071169857

The handbook of fixed income securities. Fabozzi, F. J. (ed). McGraw-Hill, 2000. 6th ed. 1335 pages. ISBN: 0071358056.

The handbook of international financial terms. Moles, Peter; Terry, Nicholas G. OUP, 1997. 605 pages. ISBN: 0 19 828885 9.

Hedge funds and funds of hedge funds made simple. What a trustee needs to know. National Association of Pension Funds. NAPF, 2005. 20 pages.

International equity investing. Vertin, J. Institute of Chartered Financial Analysts, 1984.

International investments. Solnik, B. Addison-Wesley, 2000. 4th ed.  737 pages. ISBN: 0 201 47377 1.

Introduction to stock exchange investment. Rutterford, J. Macmillan, 1993. 2nd ed. 445 pages. ISBN: 033359388X.

Investment section monograph. Society of Actuaries; Investment Section. 1999. 152 pages. ISBN: 093895962X.

Investments. Sharpe, W. F.; Alexander, G. J.; Bailey, J. V. Prentice Hall, 1999. 6th ed.  962 pages. ISBN: 013011507X.

Investments. Bodie, Z.; Kane, A.; Marcus, A. J. McGraw-Hill, 2005. 6th ed. 1090 pages. ISBN: 0071238204.

Modern portfolio theory and investment analysis. Elton, E. J.; Gruber, M. J.; Brown, S. J. et al. John Wiley, 2003. 6th ed.  705 pages. ISBN: 0471238546.

Money and capital markets. Pricing, yields and analysis. Sherris, M. Allen & Unwin, 1996. 2nd ed.  217 pages. ISBN: 1864481595.

Options, futures and other derivatives. Hull, J. C. Prentice Hall, 2006. 6th ed.  789 pages. ISBN: 0131499084.

Risk management in banking. Bessis, J. John Wiley & Sons Ltd, 2002. 2nd ed.  792 pages. ISBN: 0471893366.

Stock index futures and options. The ins and outs of trading any index, anywhere. Gidel, S. A. John Wiley, 2000. 254 pages. ISBN: 0471295396.

Swaps made simple. What a trustee needs to know. National Association of Pension Funds. NAPF, 2005. 16 pages.

Worldwide asset and liability modelling. Ziemba, W. T.; Mulvey, J. M. (eds). Cambridge University Press, 1998.  665 pages. ISBN: 0521571871.

Articles

Absolute return funds and institutional investors. Howie, R. J.; Beukes, L. J.; Collier, I. C. et al. 2003. 40 pages.

The application of modern techniques to the investment of insurance and pension funds. Tilley, J. A.
23rd International Congress of Actuaries (TICA) (1988) R: 301-326.

Asset management: challenging strategic perceptions of tomorrow's markets. Strategic overview. Arthur Andersen. 1999. 32 pages.

Bond asset management - an overview. Sweeting, P. J.; Bagnall, D. J.; Cutler, H. P. B. et al. SIAS, 2003. 55 pages.

A bridge too VaR. McKee, C.
North American Actuarial Journal (1999) 3 (2): 66-71.

The concept of investment efficiency and its application to investment management structures. Hodgson, T. M.; Breban, S. J.; Ford, C. L. et al.
BAJ (2000) 6(3): 451-545.

The cost of capital for financial firms. Exley, J.; Smith, A. D.
BAJ (2006) 12(1): 229-301.

Derivatives for solvency protection. Kemp, M. H. D.
26th International Congress of Actuaries (TICA) (1998) 7: 451-472.

Employee saving and investment decisions in defined contribution pension plans: survey evidence from the UK. Byrne, Alistair. [2005].

Equity market neutral investing. Goodsall, B.
Journal of Pensions Management (2000) 5 (3): 243-247.

Financial risk management. Dowd, K.
Financial Analysts Journal (1999) July/August: 65-71.

Future financial regulation: an actuary's view. Fishman, A. S.; Daldorph, J. J.; Gupta, A. K. et al.
BAJ (1998) 4(2): 145-191.

Gilt strips. Bank of England. 1998. 22 pages.

Global asset liability management. Dempster, M. A.; Germano, M.; Medova, E. A. et al.
BAJ (2003) 9(1): 137-216.

Hedge funds. Caslin, J. J.
BAJ (2004) 10(3): 441-541.

The information ratio. Goodwin, T. H.
Financial Analysts Journal (1998) July/August: 34-43.

Introduction to the formation of investment strategy for life insurance companies and pension plans. Stapleford, R. H.; Stewart, K. W. 1991. 34 pages.

Lease terms, option pricing and the financial characteristics of property. Adams, A. T; Booth, P. M.; MacGregor, B. D.
BAJ (2003) 9(3): 619-635.

Making actuaries less human. Lessons from behavioural finance. Taylor, N. SIAS, 2000. 32 pages.

Modelling copulas: an overview. Dorey, M.; Joubert, P. SIAS, 2005. 27 pages.

A multifactor model for the term structure and inflation for long-term risk management. Cairns, A. J. G. 2000. 31 pages.

The Myners Review and subsequent issues. Myners, P.
BAJ (2002) 8(1): 75-90.

Pension schemes and fixed income investment. Sweeting, P. J.
BAJ (2004) 10(2): 353-418.

Practical risk management for equity portfolio managers. Heywood, G.; Marsland, J. R.; Morrison, G. M.
BAJ (2003) 9(5): 1061-1140.

Property investment appraisal. Adams, A. T.; Booth, P. M.; MacGregor, B. D.
BAJ (1999) 5(5): 955-982.

Proposals for a portfolio risk measurement and reporting standard. Kemp, M. H. D.; Cumberworth, M.; Gardner, D. et al. 1998. [8] pages.

Report of the Fixed-Interest Working Group. Feldman, K. S.; Bergman, B.; Cairns, A. J. G. et al.
BAJ (1998) 4(2): 213-383.

Risk and capital assessment and supervision in financial firms. Creedon, S.; Chalk, A.; Chaplin, M. B. et al. 2003. 68 pages.

Value at risk. Linsmeier, T. J.; Pearson, N. D.
Financial Analysts Journal (2000) March/April: 47-67.