Aflac 2007 Annual Report Download - page 25

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•Reflecting a transfer of $450 million from
Aflac U.S. to Aflac Incorporated,
investments and cash were $7.4 billion at
the end of 2007, down 1.2% from 2006.
•Net investment income rose 7.5%, from $465
million in 2006 to $500 million in 2007.
•The average yield on new investments was
6.44% in 2007, unchanged from 2006.
Corporate debt securities again accounted
for the majority of our U.S. investments in
2007. Based on amortized cost, 74.9% of
our holdings were rated A or better at the
end of 2007, and only 1.6% were rated
below investment grade.
Outlook for Aflac U.S. –
Energized to Sustain Growth
As we look ahead in the U.S. market, we
believe the need for the types of products
Aflac offers is growing along with
consumers’ appreciation for Aflac’s
ability to provide timely help when they
need it most. We have a large and effective
sales force that specializes in distributing
products through the worksite. Our more
than 402,000 payroll accounts represent
less than 7% of the six million small
businesses in the United States, which
suggests there is a vast, untapped
market of potential payroll accounts
and customers. We believe Aflac is
well-positioned to capitalize on
those opportunities. We will:
•Refine our product line – We will closely
examine consumers’ needs and respond
with innovative and affordable products
and benefits that anticipate and meet
those needs.
•Grow and enhance our distribution
system – Continued expansion, training,
support and leadership are essential at all
levels to extend our reach to more consumers.
•Communicate a clear brand message and
broadened mediums – We will intensify our
connections with employers and their
employees by continuing our strong brand
recognition while focusing on defining our
brand and adding new ways to reach
consumers through print and online
advertising.
•Improve efficiency, mobility and ultimately
productivity through technology – We will
continue to upgrade our technology to
improve the services we offer our customers
and the flexibility we give sales associates
while at the same time controlling
operating expenses.
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