Aflac 2015 Annual Report Download - page 42

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Aliated Corporate Agency – Agency in Japan directly
affiliated with a specific corporation that sells insurance
policies primarily to its employees
Earnings Per Basic Share – Net earnings divided by the
weighted-average number of shares outstanding for the period
Earnings Per Diluted Share – Net earnings divided by the
weighted-average number of shares outstanding for the period
plus the weighted-average shares for the dilutive effect of
sharebased awards outstanding
Group Insurance – Insurance issued to a group, such as
an employer or trade association, that covers employees
or association members and their dependents through
certificates of coverage
Individual Insurance – Insurance issued to an individual
with the policy designed to cover that person and his or her
dependents
In-force Policies – A count of policies that are active
contracts at the end of a period
Net Investment Income – The income derived from interest
and dividends on investment securities, after deducting
investment expenses
New Annualized Premium Sales – Annual premiums,
on policies sold and incremental increases from policy
conversions, collected over a 12-month period, assuming the
policies remain in force
Operating Earnings Per Share – Profits per share derived
from operations before realized investment gains and losses
from securities transactions, impairments, and derivative and
hedging activities, as well as nonrecurring items
Persistency – Percentage of premiums remaining in force
at the end of a period, usually one year. For example, 95%
persistency would mean that 95% of the premiums in force
at the beginning of the period were still in force at the end of
the period
Premium Income – Revenues that an insurer receives as
premiums paid by its customers for insurance products
Risk-based Capital (RBC) Ratio – Statutory adjusted
capital divided by statutory required capital. This insurance
ratio is based on rules prescribed by the National Association
of Insurance Commissioners (NAIC) and provides an indication
of the amount of statutory capital the insurance company
maintains, relative to the inherent risks in the insurer’s
operations
Solvency Margin Ratio (SMR) – Solvency margin 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 levels
Total Return to Shareholders – Appreciation of a
shareholder’s investment over a period of time, including
reinvested cash dividends paid during that time
Voluntary Supplemental Insurance – Benefits purchased
by a consumer at the consumer’s own expense in addition to
a (typically employer-provided) major medical plan that covers
out-of-pocket expenses not typically covered under the primary
insurance policy
GLOSSARY OF SELECTED TERMS