Aflac 2007 Annual Report Download - page 2

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When an unexpected medical event strikes, copayments,
deductibles and other expenses often loom close behind, adding
financial stress to an already difficult situation. Everyday expenses
like rent, mortgage payments and car payments compound the
problem, especially if the sickness or injury results in missed work.
For more than 52 years, our products have helped policyholders
following a life-interrupting medical event. Aflac insurance
products help protect the entire family against financial hardship
by quickly paying cash directly to the policyholder.
We have tens of thousands of sales associates and employees who
provide service to our customers so they can focus on what’s
most important – recovery – without the added stress of
worrying about finances. This gives our policyholders
a chance to resume life where they left off. Aflac’s
insurance products provide protection to more
than 40 million people worldwide. We maintained the distinction
of being the number one provider of guaranteed-renewable
insurance in the United States and the number one insurance
company in terms of individual policies in force in Japan, leaving
no doubt that “There’s Only One Aflac.”
Aflac is rated AA by both Standard & Poor’s and Fitch Ratings and
Aa2 (Excellent) by Moody’s for financial strength. A.M. Best rates
Aflac as A+ (Superior) for financial strength and operating
performance. Among many accolades, Aflac has been included in
Fortune magazine’s listing of America’s Most Admired Companies
for seven consecutive years as well as Fortune magazine’s list of
the 100 Best Companies to Work For in America for ten
consecutive years. Aflac Incorporated is a Fortune 500
company listed on the New York Stock Exchange under
the symbol AFL.
There’s Only One Aflac
Message from Management 2
Our ability to sustain momentum in the United States and build
momentum in Japan helped us meet our sales and financial
objectives in 2007. We also made history with our decision to give
shareholders an advisory vote on compensation through what is
commonly referred to as “Say-on-Pay.”
A Conversation with Dan Amos 6
Chairman and CEO Dan Amos shares his thoughts on topics
including corporate citizenship, the economy and opportunities
for Aflac.
Aflac Japan 8
Aflac Japan gathered momentum through an enhanced product
line, strengthened distribution system and a strong brand. In turn,
this prompted Aflac Japan’s continued status as the number one
company in terms of individual policies in force.
Aflac U.S. 16
Aflac U.S. benefited from a strengthened product line, a larger and
more capable sales force and technology that enabled mobility and
increased productivity for the sales force.
Selected Financial Data 22
This section includes summary statements of earnings and balance
sheets, stock price ranges and exchange rates for the past 11 years.
Management’s Discussion and Analysis 24
This section provides an analysis of Aflac’s overall financial
condition and reviews the company’s financial and operational
performance in Japan and in the United States.
Consolidated Financial Statements 46
This section contains the consolidated financial statements of Aflac
Incorporated and its subsidiaries.
Notes to the Consolidated Financial Statements 50
This section provides additional information about the company’s
consolidated financial statements and accounting policies.
Investor Information 75
With a total return to shareholders of 38.2%, including reinvested
cash dividends, Aflac’s shares significantly outperformed market
indices in 2007, enhancing wealth for our shareholders.
Board of Directors and Management 76
Biographical information on the company’s leaders
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