Aflac 2007 Annual Report Download - page 20

Aflac U.S.
Aflac U.S. – Full Steam Ahead
From coast to coast, 2007 was a busy and
rewarding year for Aflac U.S. We again
enhanced our product portfolio to ensure
that we offer consumers needed coverage.
We advanced our sales force in terms of size
and effectiveness through recruiting and
training at every level. We launched new
television commercials and print ads that
used the Aflac Duck to better communicate
how our products help people when they
need it most. And finally, we furthered our
use of technology to provide convenience
for our sales force and customers, which
benefited the efficiency of our operations
and enhanced customer service. In the
process, we produced record new
annualized premium sales. New sales of
$1.6 billion were 9.5% higher than in 2006,
meeting our expectations for the year.
Some additional highlights for 2007 follow:
•Premium income increased 10.8% to $3.9
billion, up from $3.6 billion in 2006.
•Total revenues were up 10.4% to $4.4 billion,
increasing from $4.0 billion in 2006.
•Pretax operating earnings rose 18.3% to
$692 million, compared with $585 million
in 2006.
Aflac’s Product Perspective –
Through Consumers’ Eyes
Aflac’s ability to develop innovative and
valued products comes from our focus on
consumer needs. The ultimate goal is to
ensure that we are providing the most
relevant coverage possible and the best
possible value for our customers. This is not
a new approach; Aflac products have a long
history of providing consumers with help
when they need it most at an affordable
price. We believe that kind of responsive-
ness to our customers is central to
growing our business.
In August 2007 Aflac introduced its newest
cancer product, Maximum Difference.
This new cancer indemnity plan responds
to and incorporates coverage for medical
advances in cancer prevention, diagnostics,
treatment, and the many new ways cancer
patients may now receive their care.
Maximum Difference is a straightforward
policy that allows customization of coverage
to fit varying needs and budgets.
There’s Only One
Aflac Sales Team
We believe the changes we made to our
sales organization in recent years have
proven to be a major impetus behind our
sales momentum. We know that a sizeable
sales force is key to distributing our
products. We recruited more than 24,200
new sales associates in 2007, which resulted
in a 4.2% increase in licensed agents at the
end of the year. But growing our sales force
means far more than just recruiting more
people. Over the last two years, we have
shifted our focus to growing the number of
16
Annualized Total New Licensed
Policies Premiums Annualized Sales
In Force* In Force** Premiums** Associates
2007 11,116 $4,510 $1,558 71,258
2006 10,519 4,101 1,423 68,394
2005 9,884 3,711 1,259 63,008
2004 9,341 3,374 1,186 58,992
2003 8,805 3,043 1,128 57,493
2002 8,077 2,674 1,070 53,149
2001 7,031 2,238 919 43,188
2000 6,119 1,861 712 37,509
1999 5,480 1,592 555 30,712
1998 5,056 1,393 482 30,045
*In thousands **In millions
Aflac U.S.
Sales Results
Aflac U.S. total new annualized
premium sales rose 9.5% in
2007 to a record $1.6 billion.
There’s Only One Aflac