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and Japan combined, we generated more
than $2.5 billion in total new annualized
premium sales in 2014.
We also take pride in generating an indus-
try-leading operating return on equity,
or ROE. Excluding the yen impact, our
operating ROE for the full year was 22.9%,
which was in line with our annual operating
ROE target of 20% to 25%.
INVESTMENTS SUPPORT OUR PROMISE
Our investment portfolio reinforces what I
believe is the most important promise an
insurance company makes to its policy-
holders – to protect them when they
need us most by paying claims fairly and
promptly. Accordingly, we have a global
investment policy that is governed by strict
risk guidelines to ensure our portfolios are
managed to achieve high average asset
quality and is well-diversified while seeking
out attractive investment opportunities
around the world. Our risk management
discipline ensures we are mindful of
various market challenges, including risks
related to interest rates, credit spreads
and foreign exchange to help ensure our
portfolio will perform well through market
cycles. Our investment philosophy guides
us to act in the best interests of our policy-
holders, while producing attractive returns
for all of our stakeholders.
LIVING OUR LEGACY TO PROTECT
50 MILLION PEOPLE AND COUNTING
Aflac provides employers and consumers
with solutions to address the financial
challenges related to health care, and
we have the privilege and responsibility
of providing financial protection to more
than 50 million people in Japan and the
United States. This is especially important
given the complex and evolving health
care environment in the United States
and Japan. We are proud of the way we
deliver on our promise to policyholders in
both countries and are excited about the
opportunities in Aflac’s future.
As we look ahead, we want to empower
people with choices that help protect their
financial well-being, especially following a
serious medical health event. We want to
continue to offer valuable products and
create connections with our policyholders
so millions of people know and understand
what it is to be served in the Aflac Way.
We also want to make doing business with
Aflac simple and convenient. In doing so,
we believe that more people will turn to
Aflac for additional solutions to their health
care needs, because we have earned their
trust and confidence.
With our ability to create products and
expand distribution, we look forward
to continuing to live the Aflac legacy as
we seize opportunities and fulfill more
promises than ever. I remain convinced
that the U.S. and Japanese markets are
excellent platforms for future growth.
I want to personally thank all of our stake-
holders for believing in Aflac and being part
of the Aflac family.
Daniel P. Amos
Chairman and Chief Executive Officer
Aflac, Aflac Incorporated
With our ability to create
products and expand
distribution, we look
forward to continuing to
live the Aflac legacy as
we seize opportunities
and fulfill more
promises than ever.
*Aflac believes that an analysis of operating earnings, a non-GAAP financial measure, is vitally important to an understanding of the company’s underlying prof-
itability drivers. Aflac defines operating earnings as the profits derived from operations, inclusive of interest cash flows associated with notes payable, before
realized investment gains and losses from securities transactions, impairments, and derivative and hedging activities, as well as other and nonrecurring items.
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