Aflac 2007 Annual Report Download - page 10

6
A Conversation with Dan Amos
QHow would you describe 2007?
AWe hope our shareholders would
agree that 2007 was another out-
standing year for Aflac. It was a year
of accomplishment and achieving
objectives. Both branches of our
operations produced strong financial
results, and Aflac Japan’s ability to turn
sales around and Aflac U.S.’s ability to
build on its strong sales momentum was
key to the sales aspect of the year. I am
particularly pleased that Aflac produced
its 18th year of achieving our target for
earnings-per-share growth of at least
15% before the impact of the yen.
QHow do you expect the claims
payment issue in Japan to impact
the industry in general, and more
specifically, Aflac?
AI think the claims payment issue has
already had an impact on the industry
and I believe it’s one of the reasons that
the market for medical insurance was
weak in late 2006 and 2007. However,
the issue has been extensively covered
in the press. So consumers already
know about what happened, and I
don’t foresee any more problems on
the horizon. In talking with CEOs of
other major insurance companies in
Japan, they are also addressing the
issue with the hope it will recede.
Our claims error rate was very low,
and as a result, we believe Aflac Japan
still has a great reputation for paying
claims promptly and fairly.
QHow important is it to be a good
corporate citizen?
AIt’s very important. And per-
forming for shareholders and being
a responsible corporate citizen are not
mutually exclusive. A company can
thrive in the modern business world
while still giving back to the com-
munity and treating people and the
environment with respect. And there
is a domino effect. I also believe that
by being a strong corporate citizen,
you ultimately enhance shareholder
value because you have the opportunity
to attract higher-quality employees,
who in turn make your company that
much better. All things being equal,
employees, investors, and customers
would rather do business with a
company that’s a good corporate
citizen.
QHave the opportunities changed
in the U.S. market?
AI think the opportunity in the U.S.
market is only growing as consumers
better understand how Aflac products
can help them. Add to that the fact that
we have a penetration rate of less than
7% in the United States, and it’s easy to
conclude there is great potential in this
market. I believe our segment of the
insurance industry offers the greatest
growth potential, and the United States
is still one of the largest insurance
markets in the world. Our marketing
approach is straightforward and com-
pelling: Aflac provides an affordable
layer of coverage so that consumers can
focus on what matters most — recovery
after a serious illness or accident. And
we’re always working on ways to get
that simple message across to more
consumers through new products,
effective agents and focused
advertising campaigns.
QWhy did you adopt Say-on-Pay?
AWe have a responsibility to listen
to our shareholders, as they have placed
their trust and financial resources in
Aflac. After all, they own the company.
I believe our shareholders have the right
to know how executive compensation
works, and I further believe we should
provide a meaningful way for share-
holders to give us input on our
compensation practices. It’s as simple
as that. Our shareholders tell us that
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