Aflac 2009 Annual Report Download - page 28

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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 identied 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 ofcials
in communications with the nancial community and
contained in documents led with the Securities and
Exchange Commission (SEC). Forward-looking statements
are not based on historical information and relate to
future operations, strategies, nancial 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 specic projections of
future results, generally qualify as forward-looking. Aac
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:
• difcult conditions in global capital markets and the
economy
• governmental actions for the purpose of stabilizing the
nancial markets
• defaults and downgrades in certain securities in our
investment portfolio
• impairment of nancial institutions
• credit and other risks associated with Aac’s investment
in perpetual securities
• differing judgments applied to investment valuations
• subjective determinations of amount of impairments
taken on our investments
• 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 signicant nancial and capital markets risk
• uctuations in foreign currency exchange rates
• signicant 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 law or regulation by governmental authorities
• ability to attract and retain qualied sales associates and
employees
• decreases in our nancial strength or debt ratings
• ability to continue to develop and implement
improvements in information technology systems
• changes in U.S. and/or Japanese accounting standards
• failure to comply with restrictions on patient privacy and
information security
• level and outcome of litigation
• ability to effectively manage key executive succession
• catastrophic events
• failure of internal controls or corporate governance
policies and procedures
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 nancial
condition and results of operations of Aac Incorporated and
its subsidiaries for the three-year period ended December
31, 2009. As a result, the following discussion should be
read in conjunction with the related consolidated nancial
statements and notes. This MD&A is divided into the
following sections:
• Our Business
• 2009 Performance Highlights
• Critical Accounting Estimates
• Results of Operations, consolidated and by segment
• Analysis of Financial Condition, including discussion of
market risks of nancial instruments
• Capital Resources and Liquidity, including discussion of
availability of capital and the sources and uses of cash
OUR BUSINESS
Aac 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
Management’s Discussion and Analysis of Financial Condition
and Results of Operations
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