Aflac 2009 Annual Report Download - page 25

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Aflac U.S. Investment Strategy:
Prudent and Effective
In light of the turmoil and uncertainty in
global nancial markets, and the resulting
investor concerns about insurance
companies’ balance sheets, we believe our
investment approach proved once again to
be prudent and effective. Corporate debt
securities again accounted for the majority
of our U.S. investments in 2009. Based on
amortized cost, 90.4% of our holdings were
investment grade at the end of 2009. Some
investing highlights from 2009 include:
• Investments and cash were $8.4
billion at the end of 2009, up 30.8%
from 2008, reflecting higher market
values of the securities we own.
• Net investment income declined
1.1%, from $505 million in 2008 to
$499 million in 2009.
• The average yield on new
investments was 7.26% in 2009,
down from 7.60% in 2008.
Outlook for Aflac U.S. – Great
Opportunity to Spread Our Wings
Even though we have experienced
great growth over many years, we are
convinced the United States is still a vast
market with incredible potential to sell
the protection products we offer. Our
more than 443,200 payroll accounts
represent just 7.4% of the approximately
six million small businesses in the United
States. That equates to tens of millions
of consumers who can benet from our
affordable insurance protection, and
we’re working hard to connect with
them. To capitalize on the opportunities
we see in the U.S. market, we will:
• Adapt our product line – We will
stay close to consumer needs and
offer customized solutions with
innovative and affordable products
that provide value with benets that
meet those needs.
• Empower and develop our sales
distribution system – We will focus
on continued growth, training,
support, motivation and leadership
of our sales force to extend our
reach to more customers.
• Clarify our brand message to
connect with potential customers –
We will nurture, create and
re-establish connections with
employers and their employees by
conveying who Aac is and how our
products work through an effective
and efcient marketing campaign.
• Improve efficiency, mobility and
ultimately productivity through
cutting-edge technology – We will
continue to adapt and upgrade new
technology to improve the services
we offer our customers and the
exibility we give sales associates
while at the same time controlling
operating expenses.
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