Aflac 2007 Annual Report Download - page 6

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There’s Only One Aflac
Every day we are open for business, we are
reminded that one thing has not changed
since our founding in 1955: Families and
individuals desire the best health care
available and protection from financial
hardship. Now more than ever, we believe
consumers are realizing they may not be
able to do that on their own. In a complex
health care environment that has produced
incredible medical advancements – and
incredible costs – it’s more important than
ever to have a partner. With Aflac’s
inventive approach to offering relevant
products at affordable prices, we believe
we are that partner.
We entered 2007 with the same unwavering
commitment to serve all of our customer
groups as we have in the past. That focus
allowed us to maintain our leadership in the
Japanese and U.S. markets and produce
another year of great performance.
Like years past, our success resulted from
executing on a time-tested, straightforward
strategy. First, we offer innovative products
that meet consumers’ needs by sharing the
burden of increasing health care costs.
Second, we enhance our distribution
capabilities to deliver those products to
consumers. This approach has created a
lengthy record of success, suggesting once
again, “There’s Only One Aflac.”
Aflac Incorporated 2007 Results
Aflac generated solid financial performance
throughout the year. Despite a weaker yen
to the dollar in 2007, total revenues rose
5.3% to $15.4 billion. Net earnings were
$1.6 billion, or $3.31 per diluted share,
compared with $1.5 billion, or $2.95 per
share, in 2006. And for the 18th consecutive
year, we attained the primary financial
objective we use internally to assess the
growth of our business — the growth of net
earnings per diluted share, excluding items
that are inherently unpredictable. We believe
this objective is the most meaningful gauge
of our management and business
performance. We also believe it is the
primary driver of our number one priority,
and that is creating value for you, our
shareholders.
In addition to strong earnings growth, we
drive shareholder value by deploying excess
capital through cash dividend payments and
our share repurchase program. In 2007, we
raised the dividend twice. As a result, cash
dividends paid per share in 2007 were
45.5% higher than in 2006. We expect to
increase cash dividends at a rate faster
than earnings growth going forward.
Repurchasing Aflac shares has also been an
effective means for enhancing our per-share
earnings growth. We repurchased 11.1
million shares in 2007, bringing the total
number of shares we have acquired since
1994 to more than 208 million.
Message from
Management
Daniel P. Amos,
Chairman and CEO
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