Aflac 2015 Annual Report Download - page 15

Aflac Incorporated Year in Review 2015 | 13
Despite the complex environment,
Aflac has been able to navigate a
secure course and grow its business
through relevant products and a
diversified distribution system. We
strive each day to fulfill our promise of
being there for our policyholders, with
a focus on paying claims accurately
and promptly. That’s the story of Aflac!
Aflac’s story in Japan began unfolding
in 1974 when we emerged on the
scene as the pioneer of cancer
insurance. At that time, cancer was
the second-leading cause of death,
becoming the number one cause of
death in 1981. With this as a backdrop,
our cancer insurance product
addressed a significant need in Japan
then and continues to today. Over the
years, we’ve leveraged our brand and
our evolving knowledge of the market
to become an innovator and provider
of other supplemental products.
We are driven each day to remain
good stewards of the trust that our
Japanese policyholders have placed in
us over these last four decades. This
has allowed us to grow and become
the leading provider of medical and
cancer insurance in Japan today, and
we are proud to provide insurance
protection to one in four Japanese
households.
In 2015, Aflac Japan’s sales objective
focused on cancer and medical
products, known in Japan as third
sector products. These policies are
more profitable and less interest-rate
sensitive than life insurance or invest-
ment-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 products, gener-
ating an increase of 13.4%, which
marks the highest growth rate for third
sector products in the past 10 years.
Distribution that Reaches
Japanese Consumers
To support our goal to be everywhere
that people want to make insurance-
buying decisions, we believe Aflac’s
diverse distribution platform remains
one of the strongest in Japan. While
Aflac insurance policies already
cover one in four Japanese
2015 AFLAC JAPAN FINANCIAL HIGHLIGHTS
IN YEN
• Direct premium** increased 1.4% to ¥1.5 trillion.
• Total revenues increased .5% to ¥1.76 trillion.
• Pretax operating earnings increased 5.3% to ¥384.1 billion.
IN DOLLARS*
• Direct premium** decreased 11.6% to $12.6 billion.
•
Total revenues decreased 12.3% to $14.5 billion.
•
Pretax operating earnings decreased 8.2% to $3.2 billion.
*Dollar amount reflects impact of yen.
**Direct premium represents amount excluding reinsurance.
AFLAC JAPAN DISTRIBUTION CHANNELS
TRADITIONAL
SALES CHANNEL*
• Aflac Japan was represented by approximately 13,100 sales agencies at the end of 2015, equating to nearly 114,000
licensed sales associates employed by those agencies, including individual agencies.
STRATEGIC ALLIANCES
DAI-ICHI LIFE
• Our alliance with Dai-ichi Life was launched in 2001. In 2015, Dai-ichi Life sold 86,019 of our market-leading
cancer policies.
BANKS
• Aflac Japan was represented by 372 banks at the end of 2015, or approximately 90% of the total number of banks
in Japan.
JAPAN POST
GROUP
• In 2015, the number of post offices selling Aflac’s cancer product increased to more than 20,000. Kampo offers Aflac
cancer products through its 76 branches.
DAIDO LIFE
• In September 2013, Aflac Japan and Daido Life Insurance entered into an agreement for Daido to sell Aflac’s cancer
insurance products specifically to the Hojinkai market, which is an association of small businesses.
* Includes independent agencies, independent corporate agencies and affiliated corporate agencies