Robert B. Crompton

Bob Crompton started his career as a group health actuary doing both group pricing and valuation work. He has since worked in individual life insurance pricing, group life and health pricing (again), financial reporting and auditing. Bob gained his MAAA designation in 1982 and his FSA designation in 1984.

Bob joined Actuarial Resources in 2001 where he has been involved in a variety of work, including consulting on prepaid tuition programs, financial reporting and analysis, insurance company tax strategy and planning and mergers and acquisitions.

Bob is a Past-President of the Southeastern Actuaries Conference, serving in that position for the 2000-2001 administration.

Bob resides in Woodstock, GA with his wife, Julie. They have two daughters, Katherine and Beth.

Representative Projects

Sources of Earnings Analysis
UnumProvident

We prepared a Sources of Earnings analysis for individual disability income products on an historical basis. This project involved compiling information from historical financial statement details, from actuarial memoranda and from actuarial appraisal reports for acquired blocks of business. The resulting report by block of business allowed UnumProvident to better explain financial results and to focus remedial actions on the areas in which problems were indicated.

Tax Reserve Optimization Study
U.S. Subsidiaries of a Multinational Insurer

We reviewed Company practices with respect to setting tax-basis reserves in order to find any quickly available “low hanging fruit.” Although our review only found relatively small amounts of such immediately available changes, the Company considered this to be found money that went straight to surplus.

Reserve Revaluation for A Disputed Acquisition Value
A Large Insurer Selling A Block of Business

This Insurer approached us when they found that the Buyer was disputing the purchase price based on the reserve methodology for a portion of the business. We were able to provide revaluation of the disputed reserves, along with an analysis of redundancy. Our analysis enabled the Insurer to obtain a better price for the sale.

Audit Support
KPMG

Due to resource constraints and internal rules, KPMG found it to be cost-effective and time-effective to outsource certain actuarial audit support work to us for the audit of some of their Caribbean-based insurance clients. We were able to supply timely and knowledgeable support, and to help KPMG identify client strengths and weaknesses

Acquisition Due Diligence Support
ALFA Insurance

We provided support to ALFA in several situations where they were looking to acquire another company. Our support included sensitivity analysis of actuarial appraisal results, preparation of statutory and GAAP pro-forma results and overall review of riskiness and strategic fit with ALFA

Prepaid Tuition Program Actuarial Support
Various, including Alabama, Colorado, Kentucky, South Carolina, Pennsylvania and West Virginia

We provide actuarial support for prepaid tuition programs that covers most, if not all, areas of actuarial quantification. Some of the projects we have performed include:

• Analysis of program shutdown liability. This includes analysis of immediate shutdown as well as shutdown at the time of projected asset depletion.
• Contract/Benefit design analysis. We have provided suggested benefit design changes in order to meet emerging needs and to reduce program risks.
• Surplus analysis. We analyzed program evolution of surplus/deficit in light of potential future participation at varying levels of price surcharges.
• Detailed cash flow analysis. We provided cash flows to the program's asset advisor for use in deploying assets.
• Analysis of Effects of Concessions from Higher Education. We analyzed various possible concessions from colleges and universities to determine their effect on program financial status. Possible concessions include freezing tuition at matriculation, discounts for prepaid tuition beneficiaries and linking prepaid tuition payouts to CPI plus a spread.

E-mail: bob.crompton@arcga.com