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Proxy Summary
AFLAC INCORPORATED
2017 PROXY STATEMENT
3
2016 Business Highlights
In 2016, the Company delivered strong operating results.
●●
Operating earnings per diluted share, excluding
foreign currency effect
1
, increased 4.7% over 2015,
meeting our objective for the 27th consecutive year.
We believe operating earnings per diluted share,
excluding foreign currency effect, continues to be
one of the best measures of our performance and a
key driver of shareholder value.
●●
Combined, we generated $2.5 billion in total new
annualized premium sales in the United States and
Japan, driven by a 4.1% increase in third sector
sales (which includes cancer and medical insurance)
in Japan.
●●
Revenues rose 8.1% to $22.6 billion. Total operating
revenues on a currency-neutral basis
1
rose 1.0%
to $21.0 billion, reflecting growth in our premium
income from our growing business.
●●
As of December 31, 2016, our capital ratios
remained strong. Risk-based capital ratio was 894%.
Solvency margin ratio, the principal capital adequacy
measure in Japan, was 945%.
●●
We have started work on converting our Japanese
operations from a branch to a subsidiary form.
Converting to this structure will allow the Company
to further align with emerging global best practices
in the financial services sector and preserve existing
state regulatory oversight in the United States while
also ensuring that our financial profile is as strong as
it is today.
We generated
net earnings
of $2.7 billion.
We repurchased
approximately
$1.4 billion
(21.6 million)
of the
Company’s shares
as part of a balanced
capital allocation
program.
We generated a strong
return on equity
of 13.9%
, and our
operating return on
shareholders’ equity
excluding foreign
currency effect
1
for
the full year was
17.3%.
We increased both the fourth quarter and annual
cash dividend for the 34th consecutive year—this
time by
4.9%
and
5.1%,
respectively. Our
objective is to grow the dividend at a rate that
is generally in line with operating earnings per
diluted share, excluding foreign currency effect.
1 Operating earnings per diluted share excluding foreign currency effect, operating revenues on a currency-neutral basis, and operating return on
shareholders’ equity excluding foreign currency effect are not calculated in accordance with generally accepted accounting principles in the United States
(GAAP). See Appendix C to this Proxy Statement for a description of these measures and reconciliation to the nearest GAAP measure, as applicable.