Aflac 2007 Annual Report Download - page 19

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Despite that challenge, Aflac’s investment
portfolio continued to perform well. Some
Aflac Japan investment highlights for
2007 follow:
•Investments and cash increased 10.6% to
$48.5 billion at the end of 2007. In yen,
investments and cash were up 6.0%.
•Net investment income increased 6.7% to
$1.8 billion. In yen, net investment income
rose 8.0%.
•The average yield on new investments was
3.38% in 2007, compared with 3.33%
in 2006.
Aflac Japan’s overall credit quality remained
high. At the end of 2007, 82.2% of our
holdings were rated A or better on an
amortized cost basis. Only 1.9% of Aflac
Japan’s debt securities were rated below
investment grade at the end of 2007.
We believe that our conservative investment
approach serves our customers and
shareholders very well.
Fueling Future Growth
As we frame our strategies for the future,
we believe the competitive attributes that
have been the impetus behind our market
leadership will continue to serve us well.
With the demand for our medical products
improving in 2007, we are still convinced
of the basic need for our products as con-
sumers struggle to keep up with higher
out-of-pocket expenses for medical care.
To help us reach out to more potential poli-
cyholders in the Japanese market, we will:
•Enhance our product line – We will research
and develop innovative products and adapt
current products to match the evolving needs
of Japanese consumers to help them cope
with the increasing burden of out-of-pocket
health care costs.
•Promote our brand position – We will
capitalize on our market-leading status to
attract consumers and distinguish our
products while emphasizing the attributes
that led us to our number one position.
•Develop our distribution system – We will
focus on enhancing the productivity of our
sales force, while also developing the banking
and Japan Post channels to better reach new
customers.
•Boost operational efficiency – We will
streamline our business processes to increase
our core competitive advantage and provide
convenience for policyholders and consumers,
while investing in new technology.
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