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AFLAC INCORPORATED 2011 YEAR IN REVIEW 11
02 03 04 05 06 07 08 09 10 11
Yen/Dollar
Exchange Rate (Closing rates)
90
100
80
70
110
120
¥130
Source: Bloomberg ©
Bank sales have dramatically
exceeded our expectations, due,
in large part, to the tremendous
popularity of WAYS. In November
2011, AWA Bank opened a new
branch specializing in insur-
ance and loan products. This
new branch is conveniently
located within a shopping mall
and was designed to appeal
to those customers anticipating
an experience resembling the look
and feel of a retail store. Ten insur-
ance specialists from various districts
gathered at this new branch to share ideas
and strategies on consultative sales of insur-
ance products, including WAYS, as well as
ideas on how to train their respective sales
teams. Many customers find WAYS attrac-
tive because its diverse options offer future
flexibility at retirement age.
THE IMPACT OF THE YEN/DOLLAR EXCHANGE RATE
Aflac Japan collects premiums in yen, pays benefits and expenses in yen,
and primarily holds yen-denominated assets to support yen-denominated
liabilities. With the exception of a limited number of transactions, we do not
convert yen into dollars. Therefore, currency changes do not have a material
eect on Aflac in economic terms. However, for financial reporting purposes,
we translate Aflac Japan’s income statement from yen into dollars using an
average exchange rate, which does influence our reported financial results in
dollar terms. Translating Aflac Japan’s results from yen into dollars means
that growth rates are magnified in dollar terms when the yen strengthens
against the dollar, compared with the preceding year. During 2011, the yen
averaged 79.73 to the dollar, or 10.0% stronger than the average of 87.69 in
2010, enhancing our reported results in dollar terms.
YEN/DOLLAR EXCHANGE RATE
(Average Closing Rates)
During 2011, the average yen/dollar exchange rate
strengthened 10.0%, which magnified Aflac Japan’s
growth rates in dollar terms.
2011 FINANCIAL
HIGHLIGHTS IN YEN
Premium income rose 5.4%
to ¥1.25 trillion, compared
with ¥1.18 trillion in 2010.
Total revenues increased
4.5% to ¥1.46 trillion,
compared with ¥1.40
trillion in 2010.
Pretax operating earnings
rose 6.8% to ¥307.6 billion
in 2011, compared with
¥287.9 billion in 2010.
2011 FINANCIAL
HIGHLIGHTS IN DOLLARS
Premium income rose 15.8%
to $15.6 billion, up from
$13.5 billion in 2010.
Total revenues were up
14.9% to $18.4 billion,
compared with $16.0
billion in 2010.
Pretax operating earnings
increased 17.5% to $3.9
billion from $3.3 billion
in 2010.