CM1A – Actuarial Mathematics

Course Overview

CM1A forms the theoretical foundation of actuarial mathematics. This course provides rigorous training in the core mathematical techniques actuaries use to solve financial problems involving interest rates, cashflows, life contingencies, annuities, and insurance products. It builds a conceptual base for modeling, reserving, and pricing within deterministic frameworks, as expected in actuarial roles across life insurance, pensions, and financial planning.

What the Course Covers

• Time value of money, interest and discount functions

• Equations of value applied to loans, bonds, and investment decisions

• Annuities, perpetuities, and cashflow valuation under varying interest scenarios

• Life tables, life insurance and annuity contracts, and present value of contingent cashflows

• Joint-life models, multiple decrement models, and health insurance applications

• Theoretical basis for premiums, reserves, and valuation methods

• Understanding of term structure, duration, convexity, and immunisation

Course Outcomes

Students completing CM1A will be proficient in applying actuarial mathematics to real-world financial scenarios. This course is designed to meet the full theoretical requirements for the IAI & IFoA CM1A examination and to prepare students for future studies in CM2, CP1, and SP2/SP4.