Aflac 2008 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2008 Aflac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

24 Aflac Incorporated Annual Report for 2008
FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995
provides a “safe harbor” to encourage companies to provide
prospective information, so long as those informational
statements are identified as forward-looking and are
accompanied by meaningful cautionary statements identifying
important factors that could cause actual results to differ
materially from those included in the forward-looking
statements. We desire to take advantage of these provisions.
This report contains cautionary statements identifying
important factors that could cause actual results to differ
materially from those projected herein, and in any other
statements made by Company officials in communications
with the financial community and contained in documents
filed with the Securities and Exchange Commission (SEC).
Forward-looking statements are not based on historical
information and relate to future operations, strategies,
financial results or other developments. Furthermore, forward-
looking information is subject to numerous assumptions, risks
and uncertainties. In particular, statements containing words
such as “expect,” “anticipate,” “believe,” “goal,” “objective,”
“may,” “should,” “estimate,” “intends,” “projects,” “will,”
“assumes,” “potential,” “target” or similar words as well as
specific projections of future results, generally qualify as
forward-looking. Aflac undertakes no obligation to update
such forward-looking statements.
We caution readers that the following factors, in addition to
other factors mentioned from time to time, could cause actual
results to differ materially from those contemplated by the
forward-looking statements:
• difficult conditions in global capital markets and the
economy generally
• governmental actions for the purpose of stabilizing the
financial markets
• defaults and downgrades in certain securities in our
investment portfolio
• impairment of financial institutions
• credit and other risks associated with Aflac’s investment in
hybrid securities
• differing judgments applied to investment valuations
• subjective determinations of amount of impairments taken
on our investments
• realization of unrealized losses
• limited availability of acceptable yen-denominated
investments
• concentration of our investments in any particular sector
• concentration of business in Japan
• ongoing changes in our industry
• exposure to significant financial and capital markets risk
• fluctuations in foreign currency exchange rates
• significant changes in investment yield rates
• deviations in actual experience from pricing and reserving
assumptions
• subsidiaries’ ability to pay dividends to the Parent Company
• changes in regulation by governmental authorities
• ability to attract and retain qualified sales associates and
employees
• ability to continue to develop and implement improvements
in information technology systems
• changes in U.S. and/or Japanese accounting standards
• decreases in our financial strength or debt ratings
• level and outcome of litigation
• ability to effectively manage key executive succession
• catastrophic events
• failure of internal controls or corporate governance policies
and procedures
COMPANY OVERVIEW
Aflac Incorporated (the Parent Company) and its subsidiaries
(collectively, the Company) primarily sell supplemental
health and life insurance in the United States and Japan. The
Company’s insurance business is marketed and administered
through American Family Life Assurance Company of
Columbus (Aflac), which operates in the United States (Aflac
U.S.) and as a branch in Japan (Aflac Japan). Most of Aflac’s
policies are individually underwritten and marketed through
independent agents. Our insurance operations in the United
States and our branch in Japan service the two markets for
our insurance business.
MD&A OVERVIEW
Management’s Discussion and Analysis of Financial Condition
and Results of Operations (MD&A) is intended to inform the
reader about matters affecting the financial condition and
results of operations of Aflac Incorporated and its subsidiaries
for the three-year period ended December 31, 2008. As a
result, the following discussion should be read in conjunction
with the related consolidated financial statements and notes.
This MD&A is divided into the following sections:
• Critical accounting estimates
• Results of operations, consolidated and by segment
Management’s Discussion and Analysis of Financial Condition
and Results of Operations