We also continued to expand our distribution system in Japan. We recruited approximately 4,400 new agencies in 2005. Once again, the majority of our sales were generated by our individual sales channel, which has benefited from evolving consumer preference for greater sales consultation. And we were especially pleased with the contribution from Dai-ichi Mutual Life. Aflac's market-leading cancer life policy and Dai-ichi Life's sales force have created a powerful combination in the market.

We remain convinced that the health care and demographic trends in Japan make it a market that is well-suited to our business. Rising national medical expenses have stressed Japan's health care system. An aging population has only added to that burden. As a result, more costs are being shifted to consumers. In fact, copayments for Japan's national health care system have increased from 10% to 30% in less than 10 years. And according to research conducted by the Japan Institute of Life Insurance in 2005, more than 63% of Japanese consumers viewed the national health care system as inadequate. Against that backdrop, we expect the need for Aflac's products to continue to grow.

A slice of life for Aflac Japan would reveal the many competitive strengths that have positioned Aflac as the number one seller of both cancer life and stand-alone medical insurance and as the largest insurer in Japan in terms of individual policies in force. We believe our scale, along with our products, distribution, brand recognition, efficient operations and customer service set us apart and pave the way for future success.

Aflac U.S. re-established momentum and produced record results in 2005. We saw a broad improvement in sales in terms of geography and product, and I believe our U.S. sales force has been reinvigorated. Throughout 2005, their dedication and determination translated into sales growth that was in line with our objective for the year. We also met our financial expectations in the United States.

From a product perspective, 2005 was a busy year. In July we launched a new and innovative vision product, marking the first time we have underwritten a vision policy. By combining traditional vision benefits with health benefits, we believe we created a truly unique product. We also introduced a revision to our hospital indemnity product. In addition, we finalized development of new life insurance plans for introduction in 2006.

Although new product introductions can help stimulate the market, our primary focus in 2005 was on distribution. Recruiting new agents to sell our products has long been the focal point of growing our distribution. In 2005, recruitment of new sales associates increased 8.0% over 2004, which was in line with our expectations for the year. At the same time, however, we emphasized more effective and consistent training in order to improve the growth of producing sales associates. We implemented new training programs in 2005 that provide our sales force with the tools they need to become successful. But training is not an event; it's a process that involves an ongoing commitment. And we are making that commitment to improve the long-term growth and effectiveness of our distribution system.

The Aflac Duck also had a busy year. With six years under his wings, the Aflac Duck was featured in four new commercials in 2005. Unlike previous Aflac Duck commercials, our most recent ads were created to do more than increase name recognition. While still entertaining consumers, we carefully designed our advertising to convey a message that gives people a better sense of how our insurance works. Based on independent research, we believe that message has started to resonate with business owners and their employees.

Employers today face the difficult task of balancing a desire to offer adequate medical coverage to employees with a need to manage expenses. An article in the September 2005 New York Times noted that "many employers are using a tactic called cost shifting, which demands employees to pay higher deductibles, premiums and copayment fees." There are literally millions of U.S. businesses facing that dilemma. As a greater portion of the health care burden is transferred to employees, we believe our products become more relevant as a means of mitigating that risk. And we also believe that trend will lead more employers and workers to see Aflac as a solution.