Aflac 2012 Annual Report Download - page 20

Aflac U.S.
Delivering Our Promise in a Challenging Environment
AFLAC U.S. 2012 FINANCIAL HIGHLIGHTS:
Premium income rose 5.4% to $5.0
billion, up from $4.7 billion in 2011.
Total revenues rose 5.4% to $5.6 billion,
increasing from $5.3 billion in 2011.
Pretax operating earnings rose by
10.3% to $997 million, compared with
$904 million in 2011.
The longstanding goal and vision of Aflac U.S. is
to be the leading provider of voluntary insurance
in the United States – a position we’ve held for
many years. In 2012, the economic landscape in
the U.S. continued to be challenging, especially
for the small business segment where more than
90% of our products are sold.
New annualized premium sales for Aflac U.S.
in 2012 were $1.5 billion, representing a slight
increase of .8% over prior year sales. Amid this
uncertain economic climate, particularly the
tenuous job market and ambiguity created
by health care reform options, we continue to
position our business for success in the evolving
environment.
During the year, we made structural changes to
our sales and marketing areas to improve our
future growth. By aligning sales and marketing,
we believe this integration enhances our ability
to deliver on the promises we make to our
customers, policyholders, shareholders and
employees.
A PRODUCT IS OUR PROMISE; A CLAIM IS OUR DELIVERY
Aflac voluntary products represent the promise that we’ll be there
for those we insure in their time of need. Our products provide
affordable insurance solutions to protect against income loss,
asset loss, and medical expenses. We are committed to evaluating
and enhancing our existing product lines, while also creating
new products to ensure our benefits are aligned with the needs
of consumers and businesses. To complement the individual
products we’ve offered for nearly six decades, we significantly
increased our competitive edge in 2009 with the addition of
group products to our portfolio. The addition of group products
has expanded our reach and enabled us to generate more sales
opportunities with larger employers for our brokers and traditional
sales agents. Our portfolio of group and individual products
provides consumers with outstanding value, while offering
businesses the opportunity to give their employees a more
valuable and comprehensive selection of benefit options.
In 2012, we revised several of our existing product offerings,
including a new cancer insurance product that incorporates
several benefits that were previously in the riders, including
wellness and initial diagnosis benefits. This allows us to provide
a simplified benefit structure that customers are better able to
understand and makes the sales process easier for our sales force.
We also introduced a revised vision product that offers more
benefits, including increased coverage for eye exams, glasses and
contact lenses. Additionally, in being cognizant of the economic
situation that many consumers face, we created policies with
various price points and corresponding benefit levels to address
the need for lower-priced product options.
AFLAC U.S. PRODUCTS
INCOME-LOSS
PROTECTION
ASSET-LOSS
PROTECTION
MEDICAL
Short-Term Disability
Life
• Term
• Whole
Accident
Cancer
Critical Illness
Hospital Intensive Care
Hospital Indemnity
Dental
Vision
18 AFLAC INCORPORATED 2012 YEAR IN REVIEW