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10 Aflac Incorporated Annual Report for 2008
103.46 to the dollar, or 14.0% stronger than
the average of 117.93 in 2007, enhancing our
reported results in dollar terms.
•Premiumincomerose18.1%to$10.7billion,up
from $9.0 billion in 2007.
•Totalrevenueswereup17.3%to$12.7billion,
compared with $10.9 billion in 2007.
•Pretaxoperatingearningsincreased23.6%to
$2.2 billion from $1.8 billion in 2007.
Aflac Japan’s Products: Insightful
Solutions, Real Protection
Although Japan has a compulsory and
universal health care insurance system,
research shows that Japanese consumers
view this government-sponsored program as
inadequate. Given Japan’s aging population,
declining birthrate and rising treatment
costs, the health care system has been under
increasing financial strain, giving way to
copayments that have risen from zero in
1984 to the current level of 30%. As health-
related expenditures continue to grow, we
believe the number of consumers looking for
protection from increased copayments and
other out-of-pocket expenses will continue
to result in a strong need for Aflac products.
Truly protecting our policyholders means we
must pursue insights into what they want and
need by monitoring changes in health care
treatments and costs and developing products
that respond with real-time solutions.
Without a doubt, we view Japan as a market
with significant potential for our founding
product, cancer insurance. Cancer remains
the leading cause of death among men and
women in Japan, and it is the most expensive
illness to treat. Consumers are both wary of
the disease and the cost of its treatment and,
therefore, are continually seeking products
that will mitigate the financial toll cancer
can take. Aflac remains the best-branded
company in Japan for cancer insurance and
we have a commanding market share for new
sales of this product. Our cancer insurance
marketing efforts in 2008 centered on Cancer
Forte, which we introduced in September
2007. Cancer Forte extended our preceding
policy’s outpatient benefits from 30 to 60
days. In addition to the traditional upfront
first-occurrence benefit, Cancer Forte also
pays policyholders a survivor annuity from
the second year through the fifth year after
diagnosis, and offers counseling and doctor
referral services upon their cancer diagnosis.
For consumers who had the earlier cancer
insurance product, we introduced a special
“ Thank you for the cash benefit payment – I was very impressed
at how quickly the payment was deposited. I was also relieved,
because I had been worrying each day about when I might be
able to go back to work.”
—Claimant; Osaka, Japan
Net Investment Income
(In billions)
Net investment income rose
10.5% to a record $2.6 billion.
99 00 01 02 03 04 05 06 07 08
$2.6
1.4
1.6 1.6 1.6
1.8
2.0 2.1 2.2 2.3
Japan U.S.