Aflac 2006 Annual Report Download - page 78

Comparison of
Five-Year Cumulative
Total Return
Aflac’s shares have
outperformed the S&P 500
and the S&P Life & Health
indices over the last five years.
12/01 12/02 12/03 12/04 12/05 12/06
0
50
100
150
200
$250
Aflac Incorporated S&P 500 S&P Life & Health Insurance
Investor Information
For more than 50 years, Aflac’s shares
have been a source of value to investors.
Those who invested in Aflac when the
company was founded in 1955 have
been their own financial heroes. The
purchase of 100 Aflac shares 50 years
ago cost $1,110. After 28 stock dividends
or stock splits, those 100 shares had
increased to 187,980 shares at the end
of 2006, excluding reinvested cash
dividends. As of December 31, 2006, the
original investment would have been
worth $8.6 million. In addition, Aflac’s
earliest investors received $103,389 in
cash dividends last year alone on their
original investment, or more than 93
times the acquisition price of those
original 100 shares.
Market Performance
The stock market posted strong gains in
2006, as did insurance stocks. The
Standard & Poor’s (S&P) 500 Index was
up 13.6%, while insurance stocks, as
measured by the Standard & Poor’s Life
and Health Insurance Index were up
15.0%. Due primarily to investor
concerns about Aflac Japan’s sales,
Aflac’s performance did not keep pace
with the market in 2006. Aflac’s share
price closed the year at $46.00, down
.9% from its 2005 closing price of
$46.42. Including reinvested cash
dividends, Aflac’s total return to
shareholders was .3% in 2006. For the
last five years, Aflac’s total return has
compounded annually at 14.5%. And
over the last 10 years, our total return
to shareholders has compounded at
16.7% annually, compared with an
8.4% compound annual return for the
S&P 500.
A Stable Shareholder Base
Approximately 82,600 registered
shareholders owned Aflac shares at the
end of 2006. Institutional investors
owned approximately 60% of Aflac’s
shares, with the balance owned by
individual investors. Directors,
employees and agents owned about 5%
of the company’s shares at the end of
2006.
Committed to Value
for Our Shareholders
We know that shareholders have needs
and expectations of the companies in
which they invest. As a public company,
we have an obligation to all members of
the investment community to provide
transparent and relevant disclosure of
information to help them gain a
thorough understanding of our
operations. This is a responsibility we
take very seriously. Our Shareholder
Services Department provides stock
transfer services and administers our
dividend reinvestment plan. On
aflac.com, we provide access to the
conference calls we conduct in
conjunction with our quarterly earnings
releases, webcasts of analyst meetings, a
calendar of events, and an e-mail alert
notification service that automatically
sends investors an e-mail message each
time Aflac issues a press release or files
with the Securities Exchange
Commission (SEC). The Investors page
of aflac.com also provides a convenient
way to view, download and print annual
and quarterly reports, SEC filings, and
quarterly statistical financial
supplements.
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*See chart on facing page for companies in this index
*
With determination to pursue an
investment strategy from an early age,
Samantha Baker is shaping up to be her
own financial hero. Samantha is an
energetic and investment-savvy 13-year-old
from Miami, Florida. With her mother’s
encouragement and support, Samantha has
been developing her interest and knowledge
in investing since age 11. As a member of an
investment club, she regularly researches
companies and then invests in companies in
which she sees potential. Samantha has
been an Aflac shareholder for over a year
now, and she even attends various investor
fairs and conferences across the country.
Aflac to the rescue!