Actuarial Science Specialization
The Actuarial Science specialization focuses on preparing students in applications of mathematics within a business context. Students gain a foundation in mathematics, statistics, and programming, and learn to apply these skills in areas of business. Our program also prepares students for four to six professional qualifying examinations.
This specialization is supported in part by Minnesota Center for Financial and Actuarial Mathematics (MCFAM), a specialized center for quantitive finance within the School of Mathematics.
Specialization course requirements
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BS degree
BS Actuarial Science Specialization (College of Science and Engineering)
 One Theoretical Algebra course
 MATH 4242: Applied Linear Algebra
 MATH 5651: Basic Theory of Probability and Statistics or STAT 5101
 MATH 5652: Stochastic Processes
 STAT 5102: Theory of Statistics II
 MATH 4065: Theory of Interest
 MATH 5067: Actuarial Mathematics I
 MATH 5068: Actuarial Mathematics II
 One CSCI course from 1103, 1113, 1133
 ECON 1101, 1102
 ACCT 2051
 FINA 3001
 STAT 3021, 3032 (technical electives)
 One of INS 4105, (4200 or 4205)
 Recommended: MATH 4067W: Actuarial Mathematics in Practice
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BA degree
BA Actuarial Science Specialization (College of Liberal Arts)
 One Theoretical Algebra course
 MATH 4242: Applied Linear Algebra
 MATH 5651: Basic Theory of Probability and Statistics or STAT 5101
 MATH 5652: Stochastic Processes
 MATH 4065: Theory of Interest
 MATH 5067: Actuarial Mathematics I
 MATH 5068: Actuarial Mathematics II
 One CSCI course
 ECON 1101, 1102
 ACCT 2051
 FINA 3001
 STAT 3021, 3032, 5102
 One INS from 4105, (4200 or 4205)
 Recommended: MATH 4067W: Actuarial Mathematics in Practice
 MATH 4995 or 4997W CLA Capstone
Sample plans
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BS degree
Freshman Year
Fall Freshman Year  Spring Freshman Year 

Math 1271 or 1371 or 1571H: Calculus I (4cr)  Math 1272 or 1372 or 1572H: Calculus II (4cr) 
Physics 1301W or 1401V: Introductory Physics for Science & Engineering I (4cr)  Physics 1302W or 1402V: Introductory Physics for Science & Engineering II – WI (4cr) 
Econ 1101: Principles of Microeconomics – VEE (4cr)  Econ 1102: Principles of Macroeconomics – VEE (4cr) 
WRIT 1301W: Freshman Composition (4cr)  Liberal education requirement 
CSE 1001: First Year Experience (1cr)  N/A 
Students who have AP credit for MATH 1272 can take MATH 4065 their freshman year. See an advisor for details.
Sophomore Year
Fall Sophomore Year  Spring Sophomore Year 

Math 2243 or 2373 or 2574H: Linear Algebra and Differential Equations (4cr)  Math 2263 or 2374 or 2575H: Multivariable Calculus (4cr) 
Math 4065: Theory of Interest – FM Exam (4cr)  Math 3283W: Sequences, Series and Foundations WI (4cr) 
Acct 2051: Introduction to Financial Reporting – VEE (4cr)  Stat 3021: Introduction to Probability and Statistics (3cr) 
CSCI 1103, 1113, or 1133: Java, C++, or Python (4cr) (CSCI 1133 preferred)  Ins 4100 OR Ins 4200: Corporate risk management or Insurance Theory and Practice (2cr) 
N/A  Liberal education requirement 
*Students bringing in certain AP credits are encouraged to take Math 5651 in their Sophomore year. See an advisor for details.
Summer Sophomore Year
Sit Actuarial Exam FM
Junior Year
Fall Junior Year  Spring Junior Year  Summer Junior Year 

Math 5651 or Stat 5101: Theory of Probability – P Exam (4cr)  Math 5652: Stochastic Processes (4cr)  Sit Actuarial Exam P 
Math 4242: Applied Linear Algebra (4cr)  Math 4281 or 5248 or other theoretical algebra Introduction to Modern Algebra (4cr) or Cryptology & Number Theory (4cr)  Internship 
Math 4067W: Actuarial Mathematics in Practice  WI (3cr, optional)  Stat 3032: Regression and Correlated Data (4cr)  N/A 
Fina 3001: Fundamental of Finance – VEE (3cr)  Two additional insurance courses (optional) Optional for Ins & Risk Management minor  N/A 
Senior Year
Fall Senior Year  Spring Senior Year  Summer Senior Year 

Math 5067: Actuarial Math I – LTAM Exam (4cr)  Math 5068: Actuarial Math II – LTAM Exam (4cr)  Sit Actuarial Exam LTAM (November) 
Stat 5102: Theory of Statistics II – VEE (4cr)  Math 5076: Future Options and Derivatives II (4cr, optional)  Sit Actuarial Exam IFM 
Math 5075: Future Options and Derivatives I – IFM Exam (4cr, optional)  Liberal education requirement or electives  WI  N/A 
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BA degree
Freshman Year
Fall Freshman Year  Spring Freshman Year 

Math 1271 or 1371 or 1571H: Calculus I (4cr)  Math 1272 or 1372 or 1572H: Calculus II (4cr) 
Foreign language (5cr)  Foreign language (5cr) 
Econ 1101: Principles of Microeconomics – VEE (4cr)  Econ 1102: Principles of Macroeconomics – VEE (4cr) 
WRIT 1301W: Freshman Composition (4cr)  Liberal education requirement 
CLA 1001: First Year Experience I (1cr)  CLA 1002: First Year Experience II (1cr) 
Students who have AP credit for MATH 1272 can take MATH 4065 their freshman year. See an advisor for details
Sophomore Year
Fall Sophomore Year  Spring Sophomore Year 

Math 2243 or 2373 or 2574H: Linear Algebra and Differential Equations (4cr)  Math 2263 or 2374 or 2575H: Multivariable Calculus (4cr) 
Math 4065: Theory of Interest – FM Exam (4cr)  Math 3283W: Sequences, Series and Foundations WI (4cr) 
CSCI 1113, 1133, or 1103: C++, Python, or Java (4cr)  Stat 3021: Introduction to Probability and Statistics (3cr) 
Foreign language  Foreign language 
CLA 3002: Career Kickstarter (1cr)  N/A 
*Students bringing in certain AP credits are encouraged to take Math 5651 in their Sophomore year. See an advisor for details.
Summer Sophomore Year
Sit Actuarial Exam FM
Junior Year
Fall Junior Year  Spring Junior Year  Summer Junior Year 

Math 5651 or Stat 5101: Theory of Probability – P Exam (4cr)  Math 5652: Stochastic Processes (4cr)  Sit Actuarial Exam P 
Math 4242: Applied Linear Algebra (4cr)  Math 4281 or 5248 or other theoretical algebra Introduction to Modern Algebra (4cr) or Cryptology & Number Theory (4cr)  Internship 
Math 4067W: Actuarial Mathematics in Practice  WI (3cr, optional)  Stat 3032: Regression and Correlated Data (4cr)  N/A 
Ins 4100 OR Ins 4200: Corporate risk management or Insurance Theory and Practice (2cr)  Acct 2051: Introduction to Financial Reporting – VEE (4cr)  N/A 
Senior Year
Fall Senior Year  Spring Senior Year  Summer Senior Year 

Math 5067: Actuarial Math I – LTAM Exam (4cr)  Math 5068: Actuarial Math II – LTAM Exam (4cr)  Sit Actuarial Exam LTAM (November) 
Fina 3001: Fundamental of Finance – VEE (3cr)  Math 4997W: Senior capstone project (1cr)  Sit Actuarial Exam IFM 
Math 5075: Future Options and Derivatives I – IFM Exam (4cr, optional)  Stat 5102: Theory of Statistics II – VEE (4cr)  N/A 
Liberal education requirement  Liberal education requirement  N/A 
Course descriptions
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Mathematics and Statistics Courses
Mathematics and Statistics Courses

MATH 4065: Theory of Interest – This course is a study of the time value of money, compound interest, annuities, loans, bonds, general cash flows and interest rate swaps. The syllabus covers the majority of material for actuarial Exam FM – Financial Mathematics (SOA) or Exam 2 (CAS).

MATH 4067: W Actuarial Math in Practice – This course is a projectbased course led by local actuarial practitioners in the areas of life insurance, health insurance, and property/casualty insurance. Students learn communication, project management and leadership skills by working in teams and presenting results. This course satisfies the upperdivision writing intensive liberal education requirement, but not the upperdivision math requirement.

MATH 5067: Actuarial Mathematics I – This course establishes the basic foundation for long term actuarial mathematics. Topics include the future lifetime random variable, the survival function, the future loss random variable, insurance, life annuities, premiums and reserves. The syllabus covers the majority of material for actuarial Exam FAML  Fundamentals of Actuarial Mathematics  Long Term (SOA). A portion of the material is covered on the MASI Exam (CAS).

MATH 5068: Actuarial Mathematics II – This course is a study of multiple state models, multiple decrements, joint life models, pension mathematics, profit analysis, Universal life insurance and embedded options in insurance and annuities. The syllabus covers the majority of material for actuarial Exam ALTAM  Advanced Long Term Actuarial Mathematics (SOA). 5067 is a prerequisite.

MATH 5075: Mathematics of Options, Futures, and Derivative Securities I – This course establishes the basic foundation for pricing and hedging derivative securities. Topics include arbitrage pricing, binomial tree model, BlackScholes formula, the greeks, hedging, exotics and simulation.

MATH 5651: Basic Theory of Probability and Statistics OR STAT 5101: Basic Theory of Probability and Statistics – This course is a study in the logical development of probability and basic issues in statistics including probability spaces, random variables, probability distributions, expected values, law of large numbers, central limit theorem, generating functions, sampling, sufficiency and estimation. The syllabus covers the majority of material for actuarial Exam P  Probability or Exam 1 (CAS). Students are required to take either Math 5651 OR STAT 5101
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Validation by Educational Experience (VEE) Classes
Validation by Educational Experience (VEE) Classes
As part of the Professional Actuarial credentialing, the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) require that VEE topics are fulfilled independently of the exam process through approved courses at a university such as the University of Minnesota. Required VEE topics include Economics, Accounting and Finance, and Mathematical Statistics. To apply for VEE credit with the SOA or CAS, two actuarial exams must be passed and VEE courses must receive a grade of B or better. These following University of Minnesota classes have been approved to fulfill the VEE requirements:

ECON 1101: Principles of Microeconomics – Microeconomic behavior of consumers, firms, and markets in the domestic and world economy. Demand and supply. Competition and monopoly. Distribution of income. Economic interdependencies in the global economy. Effects of global linkages on individual decisions.
This class in addition to ECON 1102 counts towards the Economics VEE. Econ 3101 may be substituted for Econ 1101

ECON 1102: Principles of Macroeconomics – Aggregate consumption, saving, investment, and national income. Role of money, banking, and business cycles in the domestic and world economy. International trade, growth, and development. U.S. economy and its role in the world economy. International interdependencies among nations.
This class in addition to ECON 1101 counts towards the Economics VEE. Econ 3102 may be substituted for Econ 1102

ACCT 2051: Introduction to Financial Reporting – This course is an introduction to financial accounting for U.S. organizations and reading financial statements.
This class in addition to FINA 3001 counts towards the Accounting & Finance VEE.

FINA 3001: Finance Fundamentals – How competition for capital in Capital Markets establishes metrics and measures used to understand financial performance of the firm. The course introduces the finance view of the firm and the application of value creation principles to firm decision making. Course presents the centrality of cash flows, the theoretical foundations for Time Value of Money, decision tools for investment of capital, basic valuation of stocks and bonds, and the theoretical foundations for the impact of risk on the required return on investor capital.
Prerequisite: ACCT 2051 (or SCO 2550). This class in addition to ACCT 2051 counts towards the Accounting & Finance VEE

STAT 5102: Theory of Statistics II – Sampling, sufficiency, estimation, test of hypotheses, size/power. Categorical data. Contingency tables. Linear models. Decision theory.
Prerequisite: STAT 5101 or MATH 5651. This class counts towards the Mathematical Statistics VEE and an upper division math course. This course does not replace MATH 5652.
Related minors
 Statistics Minor: When you earn a BA or BS in mathematics with Actuarial Specialization, you will satisfy all of the requirements for a Statistics Minor without additional coursework, but you must declare this minor with the School of Statistics for it to appear on your transcript! We recommend that you plan early for any additional desired minors or double majors.
 Insurance and Risk Management Minor: Requires only 4 additional credits beyond the specialization. Supports actuarial work or allows students to branch out to find emerging risk management positions outside of insurance, with or without actuarial credential.
 Computer Science Minor: Prepares students for predictive modeling actuarial work, especially in the Property & Casualty or Health spaces. Graduate work in Data Science, Financial Engineering, Operations Research, and more.
 Economics Minor: Supports a future in Health Economics units in insurance firms.
 Finance Minor: Prepares students for actuarial work or risk or market analyst in a more entrepreneurial environment. Graduate work in Business Analysis or MBA. (Cannot be paired with an Insurance and Risk Management minor)