Aflac 2015 Annual Report Download

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2015 YEAR IN REVIEW
THE STORY OF AFLAC
60 YEARS IN THE MAKING
2015 YEAR IN REVIEW
THE STORY OF AFLAC
60 YEARS IN THE MAKING

Table of contents

  • Page 1
    2015 YEAR IN REVIEW THE STORY OF AFLAC 60 YEARS IN THE MAKING

  • Page 2
    ... worksite in the United States* and insures one in four households** in Japan, providing financial protection to more than 50 million people. *Source: Eastbridge Consulting Group, Inc. U.S. Worksite/Voluntary Sales Report. Carrier Results for 2014. Avon, CT: April 2015 **Based on the 2014 number...

  • Page 3
    2015 YEAR IN REVIEW THE STORY OF AFLAC 60 YEARS IN THE MAKING Ours is a story of service - 60 years in the making. As we celebrate our diamond anniversary, Aflac is here to help our policyholders in their time of need. It's a story about people - their compassion, strength and resilience. Aflac ...

  • Page 4
    AFLAC'S GOAL: To provide customers with the best value in voluntary insurance products in Japan and the United States TABLE OF CONTENTS Message from Management A Conversation with Aflac Chairman and CEO Dan Amos The Impact of Foreign Currency on Aflac Aflac Japan Aflac U S Aflac Milestones...

  • Page 5
    ... PRODUCTS sold through EXPANDED DISTRIBUTION CHANNELS yields NEW ACCOUNTS AND CUSTOMERS PROTECTING AGAINST: Asset Loss Income Loss Out-Of-Pocket Medical Expenses REACHING CUSTOMERS AT: Worksite Retail Locations Home INSURING: More than 50 million people Aflac Incorporated Year in Review 2015...

  • Page 6
    ...line to ensure we're continuing to meet the needs of consumers. We saw phenomenal success across all channels in sales of our third sector products, particularly with the product we pioneered - cancer insurance. These results helped generate a year in which we achieved the highest annual growth rate...

  • Page 7
    ... AND MARKET VOL ATILITY 2015 represented a year of executing on our long-term investment strategy after completing the transformation of our investment platform, which included new leadership, building out investment teams in New York and Tokyo, new investment processes and governance that...

  • Page 8
    ... product innovator and trusted brand. How do you view Aï¬,ac's role in the community? In 1995, we began our partnership with the Aï¬,ac Cancer and Blood Disorders Center of Children's Healthcare of Atlanta, and in 2001, we established the first Aï¬,ac Parents House in Japan, with two more added...

  • Page 9
    ... of potential customers bigger. In 2015, Aï¬,ac Japan remained the leading provider of cancer and medical insurance policies in Japan, insuring one in four households, and that tells the big story! In the United States, we are the leading provider of voluntary insurance at the worksite, and I think...

  • Page 10
    ... the full year of 2015 were $4.1 billion. Excluding the impact from the weaker yen, operating earnings were $4.4 billion. Average Yen/Dollar Exchange Rates Â¥130 120 110 100 90 80 70 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YEN WEAKENING YEN STRENGTHENING Source: Bloomberg © *Aï¬,ac...

  • Page 11
    ... the impact from the yen, total assets at the end of December 2015 were $118.3 billion. Year-End Yen/Dollar Exchange Rates ¥130 120 110 100 90 80 70 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YEN WEAKENING YEN STRENGTHENING Source: Bloomberg © Aflac Incorporated Year in Review 2015 | 9

  • Page 12
    ...THAN 40 YEARS IN THE MAKING The story of Aflac in Japan bears witness to four decades of ongoing changes, including those related to the economy, demographics and competition Through it all, one thing has remained steadfast: our focus on helping to provide Japanese citizens with financial protection...

  • Page 13
    Aflac Japan Aflac Incorporated Year in Review 2015 | 11

  • Page 14
    ... sales agency, has beaten cancer twice, so he knows firsthand how Aflac products help mitigate health care cost, enabling him to focus his energy on a much greater battle: recovery And three years ago, Mr Nishizawa was devastated when he lost his best friend to the disease These personal experiences...

  • Page 15
    ... us to grow and become the leading provider of medical and sensitive than life insurance or investment-type products such as annuities, which is especially important given the pervasive low-interest-rate environment in Japan. For 2015, we greatly exceeded our sales growth target for third sector...

  • Page 16
    ... health care coverage. Within one year of the introduction of EVER, Aflac became the leading seller of medical insurance in Japan. Most recently, in June 2015, we introduced an enhanced medical product. In 2009, Aflac introduced a child endowment product that pays a lump-sum benefit at the time of...

  • Page 17
    ... to them for help on a daily basis Nobuo Nakagawa is a sales promotion leader at the Osaka Asahi Post Office, and his responsibility is to sell insurance products, including Aflac's Cancer DAYS "insurance for daily living " He frequently visits customers at their homes by way of motorcycle to sell...

  • Page 18
    ... 68 years in the making The bank attributes its success largely to their employees, who offer a broad portfolio of financial solutions that best respond to customers' needs throughout various stages of life This includes Aflac's cancer and medical insurance, as well as other life insurance products...

  • Page 19
    .... training and support that not only ensure the success of our alliance, but more importantly, the best experience for customers throughout Japan. care costs have driven the majority of Japanese consumers to seek private insurance to help cover rising out-ofpocket expenses. Aï¬,ac's trusted brand...

  • Page 20
    ...Aï¬,ac Duck to market specific products and help drive sales. In 2014, which was Aï¬,ac's 40th year of operations in Japan, we introduced an advertising campaign there featuring a new character called "Hajimete," or "Pioneer," Duck to promote New Cancer DAYS, our most recent cancer product offering...

  • Page 21
    ... diseases Through generous donations from Aflac Japan's sales agents, employees and officers, three Parents House locations - two in Tokyo and one in Osaka - Aflac Japan is helping thousands of children and adolescents battling health issues, while also supporting the families that love them The...

  • Page 22
    ... by a large volume of low-premium products. The administrative efficiencies we've gained through the years have enhanced the value we deliver to customers daily. have made Aï¬,ac the leading provider of medical and cancer insurance are very much alive and well. In fact, they are thriving! Looking...

  • Page 23
    AFLAC JAPAN - KEY OPERATIONAL METRICS TOTAL NUMBER OF AGENCIES AND BANKS REPRESENTING AFLAC TOTAL POLICIES AND RIDERS IN FORCE* ANNUALIZED PREMIUMS IN FORCE** NEW ANNUALIZED PREMIUMS** LICENSED SALES ASSOCIATES*** 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 38,115 37,028 36,117 34,880 33...

  • Page 24
    A STORY 60 YEARS IN THE MAKING 2015 saw the 60th year of Aï¬,ac's founding, marking a major milestone and chapter in our story, and a busy year it was! Aï¬,ac U.S. further advanced its longstanding vision to be the number one provider of voluntary insurance at the worksite in the United States* - a ...

  • Page 25
    Aflac U.S. Aflac Incorporated Year in Review 2015 | 23

  • Page 26
    ...and illustrates why Aflac is the leading provider of supplemental insurance at the worksite Marcus has enjoyed an inspiring journey to weight loss and physical fitness His is a story of achieving an ideal work / life balance, channeling his passion for helping others into his work at Aflac Group and...

  • Page 27
    ... Sales Report. Carrier Results for 2014. Avon, CT: April 2015 AFLAC U.S. PRODUCTS INCOME-LOSS PROTECTION ASSET-LOSS PROTECTION SUPPLEMENTAL MEDICAL • Short-Term Disability • Life (Term, Whole) • Accident • Cancer • Critical Illness • Hospital Indemnity • Dental • Vision Aflac...

  • Page 28
    ... our distribution opportunities and provide more voluntary product solutions to help consumers dealing with a major health event or unexpected illness. Owning Our Customer Experience by Leveraging the Aflac Brand We've created a strong brand that is important not only to meet, but also to exceed...

  • Page 29
    ...distribution among traditional career agents, but also among our broker channel In early 2015, Aflac began working with Pattysue Rauh, Executive Vice President and National Benefits Leader for Brown & Brown, Inc. to begin offering Aflac's voluntary products to Brown & Brown's sales team and national...

  • Page 30
    ... sales agent representing Aflac from the Philadelphia, Pa area, has been an Aflac agent for more than 20 years Throughout this time, Darlene has helped to bring her clients the peace of mind that Aflac's policies provide Darlene's zest for helping others comes through each time she presents a policy...

  • Page 31
    ... is based on successful completion of an audit and exceeding a customer satisfaction benchmark. AFLAC U.S. - KEY OPERATIONAL METRICS POLICIES AND CERTIFICATES IN FORCE* ANNUALIZED PREMIUMS IN FORCE** TOTAL NEW ANNUALIZED PREMIUM** MONTHLY AVERAGE PRODUCERS 2015 2014 2013 2012 2011 2010 2009 2008...

  • Page 32
    ... Cancer and Blood Disorders Center of Children's Healthcare of Atlanta through the TOMODACHI-Aï¬,ac Program to observe and share best practices related to research, care and treatment protocols of children with cancer. Hirozumi Sano, M.D., is Chief of Pediatrics at Sapporo Hokuyu Hospital in Japan...

  • Page 33
    ... leading the next chapter of the Aflac Cancer Center, Dr Graham brings a wealth of experience to the table, having previously served as Professor of Pediatrics and immunology at Children's Hospital Colorado, where he oversaw all clinical oncology research Aflac Cancer and Blood Disorders Center 2015...

  • Page 34
    ... A Time of Vision American Family Life was founded on November 17, when principal founder John Amos joined with his brothers, Paul and Bill, to start the insurance business in a small six-room complex in downtown Columbus, Georgia. American Family Life pioneered the introduction of a cancer policy...

  • Page 35
    ... States and Japan. 2008 Corporate Governance Recognition: Aflac became the first publicly owned company in the United States to give shareholders a "Say on Pay" advisory vote on compensation. 2009 2010 and Beyond Aflac acquired Continental American Insurance Company (CAIC), now branded as Aflac...

  • Page 36
    ....82 464,502 467,408 $ 1.34 34.16 466,868 469,287 *Includes impact from ASC 815 for all years presented prior to 2011 Amounts in 2010 and 2011 have been adjusted for retrospective adoption of revised accounting guidance related to deferral of policy acquisition costs effective January 1, 2012. 34

  • Page 37
    ... 2011 $ 20,362 3,280 (1,552) 81 22,171 13,749 5,472 19,221 2,950 1,013 $ 1,937 $ 4.15 4.12 2010 $ 18,073 3,007 (422) 74 20,732 12,106 5,065 17,171 3,561 1,233 $ 2,328 $ 4.96 4.92 2009 ...577 1,395 2,133 7,927 $ 56,361 $ 49.65 35.50 46.42 ¥ 118.07 109.88 Aflac Incorporated Year in Review 2015 | 35

  • Page 38
    ...(Superior) A.M. Best ...*Ratings as of 3/1/16 Rating & Investment Information Inc. (R&I) ...AA- Visit aï¬,ac.com and click on Investors to access: Your AFL shareholder account through aflinc® Aï¬,ac's financial information A calendar of events Dividend reinvestment plan (DRIP) information $1.58...

  • Page 39
    ... 2010 2011 2012 2013 2014 2015 *$100 invested on December 31, 2005, in stock or index, including reinvestment of dividends. Fiscal year ending December 31. Copyright © 2016 Standard & Poor's, a division of The McGraw-Hill Companies, Inc. All rights reserved. Aflac Incorporated Year in Review 2015...

  • Page 40
    ... and a member of the American Academy of Actuaries and joined the board of Aflac Incorporated in 2015. Barbara K. Rimer, DrPH, 67, has been dean and alumni distinguished professor of the University of North Carolina at Chapel Hill Gillings School of Global Public Health for more than 10 years, and...

  • Page 41
    ...president in July 2013. He was promoted to his current position in January 2015. He is a member of the New York State Bar. Jun Isonaka, 58, first senior vice president, sales, Aflac Japan, joined Aflac in 1980 and served as general manager in various marketing and sales departments from 1999 through...

  • Page 42
    ... total divided by one half of the risk total. This insurance ratio is prescribed by the Japan Financial Services Agency (FSA) and is used for all life insurance companies in Japan to measure the adequacy of the company's ability to pay policyholder claims in the event actual risks exceed expected...

  • Page 43
    CONTACT INFORMATION Aflac Worldwide Headquarters 1932 Wynnton Rd Columbus, GA 31999 Shareholders in the U S with questions about individual stock accounts Institutional investors with questions about the company tel: 706 323 3431 aflac.com Shareholder Services tel: 706 596 3581 or 800 227 4756 ...

  • Page 44
    aflac.com 706.596.3264 or 800.235.2667 Aflac Incorporated | 1932 Wynnton Road Columbus, Georgia 31999