The Presidential Address visits some of the current issues affecting the actuarial profession and expresses some personal views of the President. Subjects covered include with-profits policies, life assurance withdrawals and disclosure, Europe, education (concerning both actuarial examinations and continuing professional education), general insurance and pensions. The Address demonstrates the need for proactivity in a world which is continually changing, which is the theme of the 2-year presidency.

EXD6: The purpose of this draft Guidance is to enable the actuary, in the interests of his client, to determine the appropriate method and assumptions for calculating pension costs, while recognising and interpreting, in the actuarial context, the requirements of SSAP 24.

EXD7: The purpose of the proposed Guidance results from a report from the Occupational Pensions Board: ‘Protecting Pensions: Safeguarding Benefits in a Changing Environment’. This recommended that bulk transfers of members without consent from one pension scheme to another should be permitted only if the actuary believes that certain conditions have been fulfilled to protect the interests of members and that in this context Professional Guidance should be given.

EXD8: This draft Guidance results from a request from the DSS to provide Professional Guidance in connection with the implementation of those provisions of the Social Security Act 1990 regarding the determination and application of the ‘valuation surplus’ to provide Limited Price Indexation for pensions in payment.

The actuary's expertise in the field of life insurance lies mainly in the application of mathematical and statistical techniques to the wide range of issues associated with life insurance business. In particular, the actuary has developed very sophisticated tools for modelling and forecasting and to help in establishing equity between policyholders. In recent years, owners of such businesses, be they policyholders or shareholders, have been coming to depend increasingly upon the actuary's skills to establish value for their overall business. On an ongoing basis, these requirements relate to such things as the need for more complete balance sheet presentation in the case of a proprietary company. Additionally, and inevitably, the actuary is drawn into the world of financial dealing in respect of takeovers and mergers where he is becoming exposed to the commercial risks inherent in being an ‘expert’. The stakes are increasing and in the larger cases hundreds and even thousands of millions of pounds are involved. In this world, the actuary can expect to be subject to a range of pressures from clients, media, takeover rules and so on, all of which are well removed from the actuary's traditional comfort zone. As the stakes increase, so does the threat of litigation.

The authors have recently been involved, one as principal and one as actuarial adviser, in the largest hostile takeover in the life insurance industry in the U.K. and, in the process, many issues of significance to the individual and the profession as a whole were exposed. This paper is intended to address this very important area and to flag some areas which could prove to be of increasing concern to the individual and to point to some where the Institute may wish to become involved.

Continuing process of updating company classifications.

Ninety-six constituents deleted during 1990—many as a result of strengthened casualty rule. Only 74 replaced—reflecting difficulty in finding suitable new non-industrial constituents.

Agencies, Overseas Traders and Publishing & Printing groups discontinued at the end of the year, but Business Services, Electricity and Media introduced. Leisure renamed Hotels & Leisure.