Aflac 2007 Annual Report Download - page 18

98 99 00 01 02 03 04 05 06 07
27.0
32.0 32.2 32.8
39.1
44.1
52.0
49.0
52.0
$57.1
Japan U.S.
Aflac’s One and Only Brand
Inspires Market Leadership
Along with quality products that deliver
value and innovation, our effective
advertising helps Aflac stand out in what
has become a crowded market. Over the
last five years, Aflac Japan has continued
to enhance its strong connection with
consumers through Aflac Duck
commercials, which are just as popular
in Japan as they are in the United States.
Based on research by CM Databank, the
commercials for our EVER product that
feature the Aflac Duck have been con-
sistently rated as either the number one
or number two commercial in the life and
non-life insurance category since June
2003. We believe advertising and branding
reinforces consumers’ favorable
perceptions of Aflac.
Technology – Holding Down Costs
While Improving Service
Technology has long been a centerpiece of
Aflac Japan’s most significant competitive
strength – administrative efficiency. Our
maintenance expenses per policy in force
are significantly lower than every other life
insurance company in Japan, bringing
quality products to consumers at affordable
prices while compensating our sales force
with attractive commissions.
Throughout the years, we have undertaken
many initiatives to improve our efficiency,
including the development and promotion
of Aflac Japan’s electronic enrollment
software and our net billing system. We
believe we have also benefited from the
2006 consolidation of three different call
centers into the Aflac Contact Center.
We further streamlined the functionality
of the Aflac Contact Center in 2007 based
on the type of inbound or outbound call to
better serve our customers. We are also
enabling our sales office employees to
spend more time on sales-related business
activities by centralizing inquiries from our
field force to the associate support center.
Solid Investment Results
Reflect a Successful Approach
Our conservative investment approach
remains the foundation of our strong
balance sheet. We strive to maximize
investment income growth while mitigating
investment risk. As such, we emphasize
liquidity, safety and quality when we invest.
We continued to be challenged in Japan
to find attractive investment yields when
investing our substantial cash flows.
14
Total Investments
and Cash
(In billions)
Aflac’s total investments and
cash increased 9.8% to $57.1
billion in 2007.
Shigeyuki Goshima, a chef at Izuei, a well-
known, traditional restaurant located in the
Ikenohashi section of Tokyo, prepares Izuei’s
best-known specialty dish – eel, or “unagi.”
Izuei was established more than 280 years
ago during the mid-Edo era. Since then, the
founding family’s special traditions, recipes,
and ownership have been passed down nine
generations to its current owner. Not only
can customers depend upon Izuei to create
delicious and traditionally prepared unagi,
Izuei’s employees can also depend upon their
employer to offer the one-and-only Aflac
policies through the restaurant’s group
account. Izuei employs approximately 200
employees at its six different locations in
Tokyo, and most employees have signed up
for Aflac’s cancer life policy. According to the
restaurant’s owner, people at her restaurant
seek stability in life, and Aflac products help
provide financial stability while also giving a
sense of comfort and peace of mind.
There’s Only One Aflac