Aflac 2006 Annual Report Download - page 25

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earnings growth. Some investing highlights
from 2006 include:
• Investments and cash were $7.5 billion at the
end of 2006, up 6.3% from 2005.
• Net investment income rose 10.4%, from $421
million in 2005 to $465 million in 2006.
• The average yield on new investments was
6.44% in 2006, compared with 6.16% the
previous year.
Corporate debt securities again accounted
for the majority of our U.S. investments in
2006. Based on amortized cost, 76.3% of
our holdings were rated A or better at the
end of 2006, and only 2.1% were rated
below investment grade.
Outlook for Aflac U.S. –
The Future is Bright
As we look ahead in the U.S. market, we
believe the need for the types of products
Aflac offers is growing. Aflac’s policies have
valuable and affordable benefits that provide
timely help for our policyholders when they
need it most. And we have a large sales force
that specializes in distributing products
through the worksite. Our more than
372,000 payroll accounts represent just 6%
of the 5.7 million small businesses in the
United States, which suggests there is a vast,
untapped market of potential payroll
accounts and customers. We believe Aflac is
well-positioned to capitalize on those
opportunities. To accomplish that, we will:
• Build on our product line – We will concentrate
on identifying consumers’ needs and create
innovative and affordable products that address
those needs.
• Enhance our distribution system – Continued
expansion, training, support and leadership is
essential to reaching more consumers and
producing sustainable sales momentum.
• Strengthen connections using the Aflac
brand – Brand awareness and definition will
remain a high priority for showing how Aflac
can come to the rescue of employers and their
employees.
• Improve efficiency through technology –
We will continue to upgrade our technology
to improve the services we offer our customers
and sales associates while at the same time
controlling operating expenses.
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