Aflac 2008 Annual Report Download - page 3

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Message from Management 2
2008 was a year that took its toll on the U.S. economy and international
financial markets. Despite the economic turmoil, we remained focused
on our proven business model by leveraging our competitive strengths
in the two markets in which we operate: the United States and Japan. In
doing so, we generated combined sales of more than 5.5 million policies
in the United States and Japan and produced more than $2.6 billion of
new annualized premium.
A Conversation with Dan Amos 6
Chairman and CEO Dan Amos shares his thoughts on topics including
corporate citizenship, the economy and opportunities for Aflac.
Aflac Japan 8
Aflac Japan continued its status as the number one insurance company
in terms of individual policies in force. In addition to favorable financial
performance, 2008 ushered in two new significant long-term sales
opportunities for distributing our products.
Aflac U.S. 16
Despite a tough economic environment, Aflac U.S. forged ahead with a
strong brand and product line and a growing sales force. Aflac U.S. also
employed technology to further enhance the efficiency of its operations
and productivity of its sales force.
Selected Financial Data 22
This section includes summary statements of earnings and balance
sheets, stock price ranges and exchange rates for the past 11 years.
Management’s Discussion and Analysis 24
This section provides an analysis of Aflac’s overall financial condition,
and reviews the company’s financial and operational performance in
Japan and in the United States.
Consolidated Financial Statements 52
This section contains the consolidated financial statements of Aflac
Incorporated and its subsidiaries.
Notes to the Consolidated Financial Statements 56
This section provides additional information about the company’s
consolidated financial statements and accounting policies.
Board of Directors and Management 96
Biographical information on the company’s leaders
We’ve extended a promise for more than 50 years to help support
our policyholders when they need it most. The stress of a medical
event is bad enough. But unexpected out-of-pocket expenses
associated with a serious illness or accident compound the stress.
And coping with everyday living expenses like mortgage or car
payments, or other household costs makes things that much worse,
especially if a patient or caregiver misses work. That’s where we
come in. Aflac’s affordable products provide cash benefits directly
to policyholders so they can spend more time on recovery and less
time worrying about paying bills.
Aflac’s mission is to combine innovative, strategic marketing with
quality products and services at competitive prices to provide the best
insurance value for consumers.
Aflac’s value-driven product portfolio is the culmination of more
than five decades of experience developing products that provide
the best coverage possible and the best possible value for our
customers. And we are continually making enhancements to our
product line to ensure they are always relevant in an ever-changing
health care environment. We have tens of thousands of sales
associates and employees dedicated to helping policyholders
resume life where they left off. Aflac’s insurance products provide
protection to more than 40 million people worldwide. We’ve again
maintained the distinction of being the number one provider of
guaranteed-renewable insurance in the United States and the
number one insurance company in terms of individual policies in
force in Japan.
As of February 27, 2009, Aflac was rated AA- by Standard & Poor’s,
AA by Fitch Ratings and Aa2 (Excellent) by Moody’s for financial
strength. A.M. Best rates Aflac as A+ (Superior) for financial
strength and operating performance. Among many accolades,
Aflac has been recognized by Ethisphere magazine as one of the
World’s Most Ethical Companies for two consecutive years and
was also named by the Reputation Institute as the Most Respected
Company in the global insurance industry in 2008. In 2009 Fortune
magazine recognized Aflac as one of the 100 Best Companies to
Work For in America for the eleventh consecutive year. Fortune
magazine also ranked Aflac No. 1 on its global list of the Most
Admired Companies in the Life and Health Insurance category.
Aflac appears on Hispanic Enterprise magazine’s list of the 50 Best
Companies for Supplier Diversity and on Black Enterprise magazine’s
list of the 40 Best Companies for Diversity. Aflac was also named
by Forbes magazine as America’s Best-Managed Company in the
insurance category. Aflac Incorporated is a Fortune 500 company
listed on the New York Stock Exchange under the symbol AFL.
To find out more about Aflac, visit aflac.com.
Aflac: Making a Difference
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