AFLAC’s conservative investment philosophy has helped our company build trust among customers and associates alike. We believe that adhering to this philosophy is the best, most responsible way to handle our financial assets so we can honor the promises we have made to our policyholders. It also allows us to earn a stable source of investment income. Some investing highlights from 2003 include:
Investments and cash reached $5.9 billion at the end of 2003, an increase of 21.6%, compared with 2002.
Net investment income increased 9.3%, from $331 million in 2002 to $362 million in 2003.
The average yield on new investments was 6.52% in 2003, compared with 7.58% the previous year.
Corporate debt securities again accounted for the majority of our investments in 2003. At year-end, we owned no real estate or mortgage loans. Based on amortized cost, 66.4% of our holdings were rated “A” or better, and only 3.2% were rated below investment grade.
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