Talk about your relationship with the AFLAC Cancer Center and how it fits your business.

       Our relationship with the AFLAC Cancer Center is a very special one, and a very personal one for our employees and our sales associates. They have taken a personal interest by raising money for the center and by visiting the young patients. Part of what we try to do with the AFLAC Cancer Center is to show we aren't just a company with a duck. We are a company that cares. For example, last year we announced a $10 million donation to the AFLAC Cancer Center because we wanted to and because it was the right thing to do.

How was your business affected by September 11?

       Immediately after the tragic events of September 11, our agents didn't want to sell insurance and consumers didn't want to buy. So from a sales standpoint, we saw an abrupt, but very short-term impact on our business. Everyone was just stunned. But as time passed, I believe people began to ask themselves questions about the adequacy of their insurance coverage. And as a result, people probably have a much better understanding of why they need certain types of insurance products, like accident insurance, for instance. I think that's one reason our sales recovered so quickly in October and put us right back on track.

Japan's economy has remained very weak. How do you continue to operate successfully in such a difficult environment?

       We have been successful because our products are among the best in the Japanese market. And, we have built a very strong reputation as being one of the most financially sound companies in Japan. Because of the continued deterioration in Japan's economy, my sense is that consumer confidence has dropped quite a bit, and people are much tighter with their money now than they were even a year ago. I think they are examining a company's strengths more closely before they purchase a product, and that works to our advantage because of our excellent reputation for financial strength and claims payment.

The final step of deregulating Japan's insurance market occurred in 2001. How did this affect AFLAC Japan and its results?

       I believe that deregulation, from the standpoint of direct competition, did not hurt us. Prior to deregulation, I said that I expected our new competitors' sales to spike and then go back down, and that is exactly what happened. I think the reason that new competitors didn't make significant inroads to our business is that we still have the best products at the best prices, and we still pay the highest commissions. I don't think anybody argues with that. However, deregulation has brought a lot of choice to consumers, and that has probably slowed down the decision-making process for those who are looking to buy insurance. But overall, I feel AFLAC is in the strongest position in Japan, and I wouldn't trade places with anybody.

In light of disappointing new premium sales in Japan last year, what changes have you made to your operations to improve results in the future?

       We have made changes to our products, distribution and advertising. We have also made several key personnel changes at AFLAC Japan, including the hiring of a new marketing director. He has been analyzing our marketing activities and determining the best ways to improve our sales results. Going forward, we should continue to see changes in the areas of our product line, distribution system, agent training, advertising, and sales force incentives. I should point out that our sales through individual agents actually did pretty well in 2001. Our sales were particularly weak in the large corporate market in part because their direct mail solicitations are less effective than face-to-face presentations in a weak economy. Our corporate agents should be able to better penetrate large accounts by focusing more on group sales presentations, one-on-one sales, or sales through a payroll account's intranet.

How would you characterize your marketing alliance with Dai-ichi Mutual Life?

       It has been enormously successful for us and is one way that deregulation benefited AFLAC Japan. Although deregulation has increased competition, it also brought us the opportunity to form this alliance. We believe our relationship with Dai-ichi Life will play a key role in growing our sales in 2002.