2005 marked the 50^th year since Aflac's founding, and a busy year it was. We expanded our product line by adding new and innovative products. We strengthened our sales force with recruiting and training initiatives. We aggressively promoted our new brand message. And we furthered our use of technology to provide convenience for our sales force and customers, while also enhancing the efficiency of our operations. In the process, we made strides toward re-establishing the sales momentum we expect to achieve in the U.S. market. Total new annualized premium sales increased 6.1% to a record $1.3 billion in 2005. Those results, like our financial performance, were in line with our expectations for the year. Some financial highlights for 2005 follow:

• Premium income increased 10.6% to $3.2 billion, up from $2.9 billion in 2004.
• Total revenues were up 10.0% to $3.7 billion, increasing from $3.3 billion in 2004.
• Pretax operating earnings rose 5.6% to $525 million, compared with $497 million in 2004.

Our commitment to consumers and our ability to match their needs during each slice of life comprise the most fundamental elements of our business. A principal aspect of our growth strategy is to enhance our product line by continually evaluating our existing products and identifying new product opportunities.

In July 2005, we launched Vision Now^SM, a new and unique product. Vision Now is ground-breaking because its benefits extend beyond traditional coverage for eye exams and materials. It also offers specific benefits for eye health, surgery, and permanent visual impairment. By the end of 2005, we were selling Vision Now in 47 states, and it accounted for more than $17 million of total new sales for the year.

We also streamlined our hospital indemnity plan to include three basic levels of coverage. Level 1 is the base level, with two subsequent levels that layer benefits and lend more flexibility to the product. Level 1 is specifically designed for compatibility with Health Savings Accounts (HSAs) and is suitable for anyone who is primarily concerned with benefits for hospital stays. In addition, we developed a new Life Protector Series in response to sales force suggestions and independent research. In early 2006, we began rolling out new versions of our term policies of varying durations and a new whole-life policy with additional benefits. And we are also developing revised specified health event and intensive care plans, which we anticipate launching in the second half of 2006.

Our primary area of focus in 2005 was on distribution. Recruiting and training continue to be the basic tenets for developing and retaining productive sales associates. For the year, we achieved our objective and recruited more than 24,200 new agents, an increase of 8.0% over 2004. In addition, we enhanced the recruiting process through electronic contracting, which results in faster licensing of our new associates.