AR Home Message From Management : Page 4 of 5 PreviousNext
AFLAC INCORPORATED ANNUAL REPORT for 2002


Financial Highlights
Our Mission
Message From Management
Interview with the CEO
AFLAC Japan
AFLAC U.S.


OFFERED AS PDF:
Management's Discussion & Analysis
Financials & Footnotes
Glossary
Investors Information
Board & Management


AFLAC U.S. – DEFYING THE ODDS
In the United States, our business continued to defy the odds by producing rapid sales, revenue and earnings growth. Even with a weaker U.S. economy, AFLAC continued the strong growth pattern it established several years ago.

As in 2001, the growth of new sales was a significant highlight. Sales exceeded our objectives and again set records. New sales in 2002 nearly doubled our sales in 1999. And for the first time, AFLAC U.S. surpassed the $1 billion mark in total new annualized premium sales. Many products contributed to our strong sales year. Accident/disability was our best-selling product for the ninth year in a row. Yet, our cancer expense, specified event, payroll life and dental products also generated strong results. In addition, our product broadening efforts continued in 2002 with the successful introduction of a new personal sickness indemnity product that has proven to be very popular with consumers and sales associates alike.

Our strong sales results are a direct reflection of our ability to grow our U.S. sales force. Recruitment of new associates was very strong during the year. More importantly, we dramatically increased the average number of producing sales associates. Without a doubt, our successful advertising campaign is one of the reasons for the significant growth of our sales force. The AFLAC duck ads have been very effective and extremely popular since their introduction in 2000. More potential sales associates and customers know the AFLAC name than ever before. We believe the benefits from our advertising program will be long-lasting. We will be releasing several new AFLAC duck commercials in 2003.

As we contemplate the U.S. market, we become more and more excited about our prospects for growth. In our view, the United States is a vast and underpenetrated market for supplemental insurance products that are marketed at the worksite. We have an attractive product line of high quality and affordable policies, an effective distribution system, and strong brand recognition. We believe these strengths will combine to produce continued success for AFLAC U.S.

Message From Management : Page 4 of 5 PreviousNext