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1955 - 2005
Financial Highlights
Our Mission
A Slice of Life
Composition of Aflac's Market in Japan and the United States
Message From Management
Q & A With the CEO
Aflac Japan
Offered as PDF
Selected Financial Data
Management's Discussion and Analysis
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Investor Information
Glossary
Board of Directors and Management
Aflac Incorporated Annual Report for 2005
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Training emerged as an area of intense focus in 2005. We continued to implement LEASE, which stands for Larger Earnings by Acquiring Smaller Employers, and we are merging it with the New Associate Training Cycle. This training cycle combines classroom instruction, e-learning through Aflac University®, and field training. We are working with our state coordinator teams to ensure our training initiatives are consistent. Consistency builds competence and confidence, both of which are vital to the success and retention of our sales associates.

In July, we introduced the Coordinator in Training (CIT) program nationwide. We designed this program to help sales associates develop the necessary leadership skills to succeed as a district sales coordinator (DSC), which is the first level of Aflac sales management. The goal of the CIT program is to build a pool of well-trained sales managers. Nearly 2,000 sales associates participated in the CIT program in 2005, and 64 of our 95 state operations at year-end had adopted the CIT program.

We are also developing an enhanced regional coordinator accreditation program (RCAP) as a training platform for both current and newly promoted regional sales coordinators (RSCs). Starting in 2006, we will begin bringing current RSCs to Aflac worldwide headquarters for five days of intense and interactive workshops on areas such as recruiting, leadership, planning, team building, and technology.

Building Definition on Top of Recognition

Since the Aflac Duck first emerged in 2000, our name awareness in the United States has reached 90%. While we certainly want to maintain the tremendous recognition we've achieved, our main emphasis is to better define Aflac and how its products benefit consumers. By doing so, we believe we'll improve the relevancy and urgency of our products, and in turn, increase sales. In late 2004, we introduced a new logo and launched a new brand message that we consistently conveyed throughout 2005: Aflac products pay you cash when you get sick or injured, which provides financial security in times when it is needed most. Initial testing shows that our message is getting through to employers and consumers.

Our commercials were played nearly 11,700 times in 2005, and we had almost 3,300 Aflac Trivia Features during various sporting events. As a result, we generated more than 3.5 billion media impressions with our target audience in addition to the tremendous amount of favorable coverage we've received through print and electronic media.

Prosperity Inspires Philanthropy

As a market leader, we embrace our sense of responsibility to give back to the community. We've enthusiastically supported the Aflac Cancer Center and Blood Disorders Service of Children's Healthcare of Atlanta for 10 years. In February 2005, Child magazine recognized the Aflac Cancer Center as one of the top three childhood cancer centers in the country. Over the years, the Aflac family has given more than $28 million to the Aflac Cancer Center. In 2005, the center treated more than 320 newly diagnosed cancer patients and nearly 1,500 patients with blood disorders. Proceeds from the sales of plush Aflac Ducks, which are sold primarily through aflac.com, are donated to the Aflac Cancer Center.

For the fifth consecutive holiday season, Aflac, together with Federated Department Stores, sold special limited-edition Aflac Holiday Ducks. In 2005, proceeds benefited 23 regional pediatric hospitals throughout the country. As in previous years, the holiday fundraiser was a tremendous success. Since the Aflac Holiday Duck program began in 2001, sales of these special limited-edition plush Aflac Ducks have raised nearly $1 million.

Technology Provides Connections and Innovation

For years, innovations like SmartApp, our proprietary, laptop-based enrollment system, have enhanced Aflac's ability to accommodate strong sales growth. Electronic application submission was 89%

Premium Income (In billions)

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