Aflac 2009 Annual Report Download - page 66

(In millions) 2009 2008 2007
Revenues:
Aflac Japan:
Earned premiums:
Cancer $ 6,406 $ 5,718 $ 4,937
Medical and other health 4,110 3,547 2,928
Life insurance 1,662 1,409 1,172
Net investment income 2,265 2,053 1,801
Other income 43 15 27
Total Aflac Japan 14,486 12,742 10,865
Aflac U.S.:
Earned premiums:
Accident/disability 2,012 1,941 1,785
Cancer 1,245 1,197 1,114
Other health 989 958 885
Life insurance 198 176 152
Net investment income 499 505 500
Other income 10 10 10
Total Aflac U.S. 4,953 4,787 4,446
Other business segments 51 38 37
Total business segments 19,490 17,567 15,348
Realized investment gains (losses) (1,212) (1,007) 28
Corporate 137 85 116
Intercompany eliminations (161) (91) (99)
Total revenues $ 18,254 $ 16,554 $ 15,393
(In millions) 2009 2008 2007
Pretax Earnings:
Aflac Japan $ 2,800 $ 2,250 $ 1,821
Aflac U.S. 776 745 692
Other business segments – (1) –
Total business segments 3,576 2,994 2,513
Interest expense, noninsurance operations (73) (26) (21)
Corporate and eliminations (68) (42) (25)
Pretax operating earnings 3,435 2,926 2,467
Realized investment gains (losses) (1,212) (1,007) 28
Impact from ASC 815 (4) (5) 4
Gain on extinguishment of debt 16 – –
Total earnings before income taxes $ 2,235 $ 1,914 $ 2,499
Income taxes applicable to pretax operating earnings $ 1,158 $ 1,015 $ 854
Effect of foreign currency translation on
operating earnings 124 111 (11)
Assets as of December 31 were as follows:
(In millions) 2009 2008
Assets:
Aflac Japan $ 71,639 $ 69,141
Aflac U.S. 11,779 9,679
Other business segments 142 166
Total business segments 83,560 78,986
Corporate 11,261 8,716
Intercompany eliminations (10,715) (8,371)
Total assets $ 84,106 $ 79,331
Yen-Translation Effects: The following table shows the
yen/dollar exchange rates used for or during the periods
ended December 31. Exchange effects were calculated
using the same yen/dollar exchange rate for the current year
as for each respective prior year.
2009 2008 2007
Statements of Earnings:
Weighted-average yen/dollar exchange rate 93.49 103.46 117.93
Yen percent strengthening (weakening) 10.7% 14.0% (1.4)%
Exchange effect on net earnings (millions) $ 55 $ 55 $ (10)
2009 2008
Balance Sheets:
Yen/dollar exchange rate at December 31 92.10 91.03
Yen percent strengthening (weakening) (1.2)% 25.4%
Exchange effect on total assets (millions) $ (799) $ 13,312
Exchange effect on total liabilities (millions) (778) 13,180
Aac Japan maintains a portfolio of dollar-denominated
securities, which serves as an economic currency hedge
of a portion of our investment in Aac Japan. We have
designated the Parent Company’s yen-denominated notes
payable as a hedge of our investment in Aac Japan. The
dollar values of our yen-denominated net assets, which
are subject to foreign currency translation uctuations for
nancial reporting purposes, are summarized as follows at
December 31 (translated at end-of-period exchange rates):
(In millions) 2009 2008
Aflac Japan net assets $ 6,736 $ 5,944
Aflac Japan dollar-denominated net assets (4,000) (3,416)
Aflac Japan yen-denominated net assets 2,736 2,528
Parent Company yen-denominated net liabilities (962) (1,876)
Consolidated yen-denominated net assets subject to
foreign currency translation fluctuations $ 1,774 $ 652
Transfers of funds from Aac Japan: Aac Japan makes
payments to the Parent Company for management fees and
to Aac U.S. for allocated expenses and prot repatriations.
Information on transfers for each of the years ended
December 31 is shown below. See Note 11 for information
concerning restrictions on transfers from Aac Japan.
(In millions) 2009 2008 2007
Management fees $ 26 $ 26 $ 32
Allocated expenses 37 36 33
Profit repatriation 230 598 567
Total transfers from Aflac Japan $ 293 $ 660 $ 632
Policyholder Protection Corporation: The total liability
accrued for our obligations to the Japanese Life Insurance
Policyholder Protection Corporation (LIPPC) was $128 million
We’ve got you under our wing.
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