Aflac 2006 Annual Report Download - page 6

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Never Fear, Aflac to the Rescue!
2006 marked Aflac’s entrance into its second
half-century of operations. During our first 50
years, we saw many changes in our industry
and our operations – changes in products,
technology, advertising and certainly, people.
But there has been a common thread passed
down from Aflac’s founders: a focus on serving
our customers and helping them when they
need it most.
Like most years, 2006 was one of opportunity
and challenge. We produced strong financial
results throughout the year. We also
maintained our market leadership in the
United States and Japan. And while there is no
“secret weapon” or “silver bullet” for
maintaining our market leading status, the core
of our success is a straightforward strategy we
use in both markets. First, we create affordable,
relevant, and innovative products that meet
consumers’ needs. Then, we find effective ways
to deliver those products to consumers. This
simple approach has served both Aflac and its
constituents well. As a result, we have achieved
five decades of steady, profitable growth while
“being a hero to” our policyholders, sales
associates, employees and shareholders.
2006 – Aflac Incorporated Results
Aflac generated solid financial performance
throughout the year. Total revenues were more
than $14.6 billion, and net earnings were $1.5
billion, in 2006. Despite the strong underlying
growth of our operations, net earnings were
unchanged from the prior year due to tough
comparisons to 2005 when we had an
unusually high level of realized investment
gains. In 2005 we initiated a bond-swap
program that produced net realized investment
gains of $167 million in that year. We
completed the program in mid-2006 and for
the full year, net realized investment gains were
$51 million. Although net earnings were flat for
the year, we again achieved the primary
Message from Management
2
Daniel P. Amos, Chairman and CEO