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Actuarial Mathematics

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Actuarial Mathematics forms the core for classical actuarial expertise. The design of the new subject modules, Actuarial Mathematics (CM1) and Financial Engineering and Loss Reserving (CM2) provides students with core reading material containing essential knowledge on areas such as how to price different financial products, such as bonds, and insurance products, such as life insurance.  

Later SA and SP subjects in the new curriculum build on CM1 and CM2 through enhanced techniques and a greater understanding complex financial products.

View the CM1 and CM2 examinations guide

Please note: the CM1 and CM2 exams are now a combination of both a written (A) and an online (B) assessment. Both elements, A and B, will need to be taken in the same exam sitting.

  • CM1A and CM2A: are theoretical exams delivered online and can be taken at your workplace or at home UK time only
  • CM1B and CM2B: are problem based assessments and will be sat in UK time only at home or at your workplace

Actuarial Mathematics (CM1)

Core Principles

Actuarial Mathematics (CM1) provides a grounding in the principles of actuarial modelling, focusing on deterministic models and their application to financial products. It equips the student with a knowledge of the basic principles of actuarial modelling, theories of interest rates and the mathematical techniques used to model and value cashflows which are either certain or are contingent on mortality, morbidity and/or survival. The subject includes theory and application of the ideas to real data sets using Microsoft Excel.

Actuarial Mathematics
CM1A
Theoretical Exam
Computer-based
3 hours and 20 minutes
Word
+
Actuarial Mathematics
CM1B
Computer-based
1 hour and 50 minutes
Excel

You must sit A + B papers in the same session.

From September 2021, an additional 5 minutes has been added to each paper to allow for candidates to download or print, if required, their exam paper.

Actuarial Mathematics (CM1) core reading is available from the IFoA E-Shop or our tuition provider ActEd (BPP).

Resources for CM1

Past papers and examiners reports for CM1 

PDF icon CM1 Syllabus for 2022 exams 

Exam format:
3 hours and 20 minutes computer-based exam (Word), plus 1 hour and 50 minute computer-based exam, (Excel)
Recommended study hours:

Financial Engineering and Loss Reserving (CM2)

Core Principles

Financial Engineering and Loss Reserving (CM2) provides a grounding in the principles of actuarial modelling, focusing on stochastic asset-liability models and the valuation of financial derivatives. It equips the student with a knowledge of the theories of behaviour of financial markets, measures of risk, determining reserves for a non-life insurer and price options. The subject includes theory and application of the ideas to real data sets using Excel.

Loss Reserving and
Financial Engineering
CM2A
Theoretical Exam
3 hours and 20 minutes
Computer-based
Word
+
Loss Reserving and
Financial Engineering
CM2B
Computer-based
1 hour and 50 minutes
Excel

You must sit A + B papers in the same session.

Financial Engineering and Loss Reserving (CM2) core reading is available from the IFoA E-Shop or our tuition provider ActEd (BPP).

Resources for CM2

From September 2021, an additional 5 minutes has been added to each paper to allow for candidates to download or print, if required, their exam paper.

Past papers and examiners reports for CM2 

PDF icon CM2 Syllabus for 2022 exams 

Exam format:
3 hours 20 minutes computer-based exam (Word), 1 hour 50 minutes computer-based exam (Excel)
Recommended study hours: