9 / 72
PROXY SUMMARY
This summary highlights information contained elsewhere in this Proxy Statement. This summary does not contain all of
the information that you should consider and you should read the entire Proxy Statement before voting. For more
complete information regarding the Company’s 2015 performance, please review the Company’s Annual Report on
Form 10-K. In this Proxy Statement, the terms “Company,” “we,” or “our” refer to Aflac Incorporated, and the term “Aflac”
refers to the Company’s subsidiary, American Family Life Assurance Company of Columbus, which operates in the
United States (“Aflac U.S.”) and as a branch in Japan (“Aflac Japan”).
2016 Annual Meeting of Shareholders
•
Date and Time:
Monday, May 2, 2016, at 10:00 a.m.
•
Place:
Columbus Museum (the Patrick Theatre), 1251 Wynnton Road, Columbus, Georgia
•
Record Date:
February 24, 2016
Voting Matters and Board Recommendations
Our Board’s Recommendation
Proposal 1: Election of Directors (beginning on page 8)
FOR each Director Nominee
Proposal 2: Advisory Vote to Approve Executive Compensation (page 58)
FOR
Proposal 3: Ratification of Independent Registered Public Accounting Firm (page 61)
FOR
2015 Business Highlights
In 2015, the Company delivered strong operating results. Business highlights included:
We met our operating earnings per diluted share objective for the 26
th
consecutive year. Operating earnings per
diluted share, excluding foreign currency effect, which we believe continues to be one of the best measures of
our performance and has been a key driver of shareholder value for many years, increased 7.5% over 2014.
We generated net earnings of $2.5 billion.
As of December 31, 2015, our capital ratios remained strong:
o
Risk-based capital (“RBC”) ratio was 933%;
o
Solvency margin ratio (“SMR”), the principal capital adequacy measure in Japan, was 828%.
Combined, we generated $2.5 billion in total new annualized premium sales in the United States and Japan,
driven by a 13.4% increase in third sector sales (which includes cancer and medical insurance) in Japan and
3.7% increase in U.S. sales.
Our total operating revenues on a currency neutral basis rose 1.3% to $22.8 billion, reflecting solid growth in our
premium income from our growing business.
We repurchased approximately $1.3 billion (21.2 million) of the Company’s shares as part of a balanced capital
allocation program.
We generated an industry-leading return on equity of 14.1%; additionally, our operating return on shareholders’
equity excluding foreign currency effect (“OROE”) for the full year was 20.2%.
We increased the fourth quarter and annual cash dividend by 5.1% with an objective to grow the dividend at a
rate that is generally in line with operating earnings per diluted share before foreign currency effect. This marked
the 33
rd
consecutive year in which we increased our dividend.
2