Aflac 2015 Annual Report Download - page 27

Aflac Incorporated Year in Review 2015 | 25
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 is the number one provider of
voluntary insurance at the worksite in the
United States*, where about 98% of our
products are sold on a payroll deduction
basis. In 2015, we continued to concen-
trate our efforts in the United States on
improving and expanding our distribution
system, creating innovative products and
owning our customer experience. In doing
so, we have expanded our presence in
the voluntary worksite market and made
strides toward re-establishing the sales
momentum we expect to achieve in the
U.S. market. In 2015, new annualized
premium sales for Aflac U.S. were $1.5
billion, representing an increase of 3.7%
over the prior year’s sales.
We believe the need for Aflac’s products
will only continue to grow in the current
climate where health care costs are
continuing to increase and employees
are bearing more and more of that
financial burden. At the same time,
we are empowering our distribution
channels to reach more businesses of
all sizes through our career field agents
and broker relationships. We continually
seek opportunities to leverage our strong
brand to support product growth in the
ever-evolving health care environment.
Additionally, we continue to seek
innovative ways to offer our holistic array
of value added services to employers,
who are increasingly turning to voluntary
supplemental providers to provide better
options and solutions to their employees.
Innovative Products Provide
Financial Protection
Our commitment to consumers and our
ability to respond and even anticipate their
needs is the most fundamental element
of our business. Ever since Aflac was
founded 60 years ago, our competitive
and valued insurance products have
been one of our greatest strengths
and a common thread in our story year
after year. Aflac policies provide cash
benefits paid directly to the customer
that can be used to help consumers
cope with unexpected out-of-pocket
medical expenses such as medication
and co-pays, household expenses, or
protection against income and asset loss
associated with an illness or medical
event. We believe our portfolio of
individual and group products provides
consumers with outstanding value, while
providing businesses of all sizes with the
opportunity to offer their employees an
affordable and comprehensive selection
of supplemental benefit solutions. In
2015, we sought innovative solutions
to the challenges consumers face by
introducing revised policies on both
an individual and group basis. Among
these, we introduced a revised individual
accident product that provides benefits for
home modifications as well as enhanced
coverage for prosthetic devices and for
injuries sustained in an organized sporting
activity. Additionally, we launched a new
group critical illness product that offers
unmatched provisions, benefits and
options for brokers to design plans that
best meet the employer’s needs, including
a selection of value added services.
2015 AFLAC U.S. FINANCIAL HIGHLIGHTS
• Direct premium* increased 2.6% to $5.3 billion.
• Total revenues increased 3.0% to $6.0 billion.
• Pretax operating earnings increased 2.7% to $1.1 billion.
*Direct premium represents amount excluding reinsurance.
*Source: Eastbridge Consulting Group, Inc. U.S. Worksite/Voluntary Sales Report. Carrier Results for 2014. Avon, CT: April 2015