Aflac 2006 Annual Report Download - page 9

Total Assets
(In billions)
Aflac’s total assets reached
$59.8 billion, reflecting solid
growth in investments and cash.
97 98 99 00 01 02 03 04 05 06
2 9.5 31.2
37.0 37.2 37.9
45.1
51.0
59.3
56.4
$59.8
Japan U.S.
designed our ads in the last two years to
convey a message that gives people a better
sense of how our insurance works while still
entertaining consumers. Our research
suggests that message is resonating with
business owners and their employees.
Employers in the United States today face
the challenge of balancing a desire to offer
adequate medical coverage to employees
with a need to manage expenses. Employers
often find that a difficult task. We frequently
see newspaper articles that suggest
employers are forced to shift costs to their
workers, which often results in higher
deductibles or copayments, or lower
benefits. There are literally millions of U.S.
businesses facing that dilemma. As a greater
portion of the health care burden is
transferred to employees, we believe our
products become more relevant as a means
of mitigating that risk. And we also believe
that trend will lead more employers and
workers to view Aflac as a solution.
I am very pleased with our U.S. operation,
and I am convinced that we have been doing
all of the right things to lay the groundwork
for continued growth in the future. Over the
last several years, our U.S. business has had
quite a makeover, and I believe these
changes sparked the momentum we’ve
generated. We’ve expanded our sales
management infrastructure and
strengthened our distribution system by
providing better training. We’ve created new
products and introduced a new branding
message. We’re using technology to leverage
our resources to respond to our agents’ and
customers’ needs. And we believe we will
continue to find ways to tap into even more
of the vast potential of the U.S. market.
Aflac – Preparing for
Growth in 2007 and Beyond
Even though the Japanese and U.S.
insurance markets are fundamentally
different and half a world apart, they both
share a common opportunity for growth.
With ever rising out-of-pocket expenses for
health care, both markets are very well
suited to the products we offer. Each market
has millions of potential customers who can
benefit from our coverage. And each has
tens of thousands of sales associates who are
dedicated to coming to the rescue when a
life-changing event turns a policyholder into
a claimant.
From a financial standpoint, we have a
strong balance sheet from which to grow.
Our investment portfolio is in excellent
shape. We’ve maintained high capital
adequacy ratios to support our ratings, and
we’re very comfortable with our capital
position. We’re also generating strong cash
flows that we can use to benefit our
shareholders in the form of cash dividends
and share repurchase. And we believe we are
in a very good position to achieve our
internal performance objective for earnings
per share growth in 2007.
Daniel P. Amos
Chairman and
Chief Executive Officer
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