Aflac 2008 Annual Report Download - page 8

4Aflac Incorporated Annual Report for 2008
99 00 01 02 03 04 05 06 07 08
$16.6
8.6
9.7 9.6
10.3
11.4
13.3
14.4 14.6
15.4
Japan U.S.
Following a regulatory change, we began
offering our products to banking customers
over the counter in Japan at the start of
2008. We believe the opportunity to sell
through Japan’s vast banking network will
benefit our sales in the long run, as we have
established longstanding and extensive
relationships over the years within the
banking sector. In fact, we have secured a
much greater number of selling agreements
with banks than any of our competitors.
The second new channel was presented
when the Japan Post Network Co., Ltd.
selected Aflac to be the provider of cancer
insurance. The Japan Post Network Co.,
Ltd. has a long history of successfully selling
insurance to consumers. We began selling
through 300 post offices in October 2008.
These new opportunities add to our
confidence in Aflac Japan’s core competitive
strengths that have positioned us as the
number one seller of both cancer and
stand-alone medical insurance, and as
the largest insurer in Japan in terms of
individual policies in force. We also believe
the need for our products, combined with
our well-known and well-respected brand,
tremendous scale, efficient operations,
relevant products, broadening distribution
and dedicated customer service, will
continue to help Aflac stand out and
position us for future success.
Aflac U.S.
Throughout our history of operating for
more than 50 years in the United States,
we have never encountered a period when
the sale of our products was impacted by
economic conditions – until now. As each
quarter passed in 2008, it became clearer
that the purchase decisions of some of our
potential customers were being affected by
the weakening economy.
Although 2008 was a challenging year
for Aflac U.S. in terms of new annualized
premium sales, we concluded the year
convinced of one thing: The demand for
our products may have been temporarily
interrupted by the economic downturn, but
the need for the products we sell has not
changed. The incidence of serious illnesses like
cancer does not change with economic cycles,
nor do the costs associated with treatment
decline when times are tough. Actually, a case
can be made that Aflac’s protection products
are more needed in a weak economy because
of the increased likelihood a household has
for lower investment returns, fewer overtime
hours or even the loss of a steady income. We
believe now more than ever, consumers need
that extra layer of protection to provide peace
of mind in very uncertain times.
Aflac U.S. effectively recruited new sales
associates last year, and we also increased the
number of associates who regularly write
new business. In addition, we produced
solid growth in the opening of new payroll
accounts throughout the year. Our new sales
associates in particular were key drivers in
opening up new accounts and selling new
Total Revenues
(In billions)
Despite a significant increase
in realized investment losses,
total revenues rose 7.5%
to $16.6 billion in 2008,
benefiting from solid growth
in premium income and the
stronger yen.