Aflac Incorporated 2011 Year in Review

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Aflac U.S. Aflac U.S. Sales Take Off! 2011 Financial Highlights: Premium income increased 3.4% to $4.7 billion, up from $4.6 billion in 2010. Total revenues were up 3.8% to $5.3 billion, increasing from $5.1 billion in 2010. Pretax operating earnings declined slightly by .8% to $917 million, compared with $924 million in 2010. 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. Our 2011 sales results were consistent with that vision. The Aflac sales force overcame lingering economic challenges to generate a 6.8% increase in new annualized premium sales for the year, which exceeded our annual sales expectation of flat to 5% sales growth. Aflac Products We are committed to continually updating our products to ensure the benefits we offer are aligned with the needs of consumers. Our ability to accomplish this while controlling expenses has resulted in low operating expense ratios in the United States. This allows us to deliver excellent value to customers while paying high commissions to traditional sales agents and our growing broker distribution channel. Following more than five decades where we focused on selling individually issued voluntary products, we are leveraging our market-leading status and the strong Aflac brand as we apply these strengths to the group products we began offering in 2009. The emphasis of our product portfolio remains squarely on the supplemental products we’ve offered for decades. The addition of group products has expanded our appeal and created sales opportunities with larger employers, brokers and our traditional sales agents. Keeping our promise to our policyholders is paramount to our business. Our policies are designed to help protect our policyholders when they need it most. Dawnn Johnson, Aflac special projects coordinator (right), has been helping employees at RLJ Companies since 2006 obtain Aflac policies that best suit their needs and to file claims when a health event occurs. Jerry Johnson, vice president of RLJ Equity Partners, knows that he can rely on Dawnn, as well as Aflac policies, to help him during his time of need. He commented, “Aflac has given me peace of mind with the company’s outstanding customer service, the overall quality of the corporation and its delivery mechanism. If you need the service it’s quick, it’s on time and hassle free.” 16 Aflac Incorporated 2011 Year in Review
Aflac U.S. Products InCOME-LOSS PrOTECTIOn Short-Term Disability Life •Term •Whole ASSET-LOSS PrOTECTIOn Accident Cancer Critical Illness Hospital Intensive Care Our sales and marketing areas synchronized their efforts to benefit our sales results. For example, in 2011, strategic, coordinated product pushes we call Smart Launches for our dental, critical care and recovery, and shortterm disability policies contributed to strong sales, particularly for veteran agents selling to existing accounts. Aflac voluntary products provide affordable insurance options to protect against income loss, asset loss and medical expenses. Our individual and group products provide options to supplement employers’ existing benefit packages. Our expanded product portfolio of individual and group products gives more options and opportunities for our sales associates and brokers to offer more tailored coverage. Building Relationships through Aflac’s Growing Distribution Network Since 1955, Aflac has been cultivating our distribution system to deliver products that offer valuable benefits consumers need. At the end of 2011, our unique distribution network was made up of approximately 74,800 licensed sales associates and brokers to sell our products. David Essary, vice president of consulting at Univers Workplace Solutions, has been working with worksite benefits solutions for nearly two decades. About his choice to do business with Aflac he said, “To me, working with Aflac is great because of Aflac’s people. As an insurance broker, I like recommending Aflac because of the company’s strong ethics and how Aflac always backs up the promises they make to policyholders and customers. I’ve built strong relationships with many businesses over the years, and when I recommend Aflac to my clients, they expect great things. Aflac has always lived up to and exceeded that expectation.” SupplemenTAL MEDICAL Hospital Indemnity Dental Vision Beyond expanding the size and capabilities of our traditional sales force, we remain excited about establishing and developing relationships with insurance brokers that typically handle the larger-case market. We anticipate that the appeal of our group products will continue to multiply our opportunities to connect with larger businesses and the employees who work there. We launched a new national insurance broker initiative to reach the largest brokers and non-enrollment firms in the U.S. To ensure that our products and services resonate with brokers in this category, we developed sales and marketing strategies brokers can use to complement and enhance the marketing methods they use to sell to their customers. Although this broker initiative is still in its early stage, our success through this channel fuels our excitement about the future growth potential for sales through this channel. “Aflac not only ‘talks the talk’ but they ‘walk the walk’ and they go the ‘extra mile’. Aflac said they would be there when we needed them and they were.” – Stanley Bittman, KY Aflac Incorporated 2011 Year in Review 17
Page 1 and 2: Aflac Incorporated 2011 Year in Rev
Page 3 and 4: Who We Are Aflac voluntary insuranc
Page 5 and 6: Aflac’s Goal: To provide customer
Page 7 and 8: Capital adequacy in Japan is princi
Page 9 and 10: to examine our business from an inc
Page 11 and 12: $117.1 101.0 84.1 79.3 51.0 45.1 65
Page 13 and 14: Bank sales have dramatically exceed
Page 15 and 16: Aflac JAPAn Products InCOME-LOSS Pr
Page 17: Aflac JAPAn - Key Operational Metri
Page 21 and 22: Aflac U.S. - Key Operational Metric
Page 23 and 24: Aflac Incorporated and Subsidiaries
Page 25 and 26: Credit quality remains a central as
Page 27 and 28: $160 140 COMPArison of Five-Year Cu
Page 29 and 30: ExECUTIve ManAGEMEnt Daniel P. Amos
Page 31 and 32: This 2011 Year in Review contains f

Aflac Incorporated 2011 Year in Review

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