In their little corner of the home office, actuaries are working with data and formulas to determine how much reserves should be held on the companys balance sheet. They believe the assumptions they use to estimate these liabilities are consistent with those being used in another corner of the building where the corporate finance department is working on its view of the future performance and profitability of the company. In still another corner of the building, the claims department is examining its short- and long-term obligations to its policyholders. Everyones working with the same information, right?

Maybe not. Some companies that are 50 years old have legacy systems they have to deal with, says Keith S. Hynes, CFO of Max Re Capital, Ltd., in Hamilton, Bermuda. It is hard to take all the systems, even for a business that has been around only 10 years, and integrate them.

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