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Aflac Incorporated Announces Third Quarter Results, Declares Fourth Quarter Cash Dividend
Date:10/23/2007

billion. Pretax operating earnings were $1.4 billion, or 10.2% higher than a year ago.

Aflac Japan continued to generate improved sales results for both the third quarter and first nine months of 2007. Total new annualized premium sales rose 2.2% to 27.9 billion yen, or $236 million, in the third quarter. For the first nine months, total new annualized premium sales were down 4.1% to 84.3 billion yen, or $706 million. Cancer insurance sales were again very strong, rising 21.8% over the third quarter of 2006. We believe cancer insurance sales benefited from our agents' focus on selling the product in advance of a scheduled premium rate increase on newly issued cancer life policies, which occurred on September 2. After several quarters of significant declines, medical sales in the third quarter were only slightly lower than a year ago. We believe the improvement in medical sales reflected a favorable initial response to Gentle EVER, our new medical product. Gentle EVER, a non-standard medical product, was introduced on August 1. Our objective remains for Aflac Japan total new annualized premium sales to be flat to up 4% in the second half of 2007.

AFLAC U.S.

Aflac U.S. premium income increased 10.7% to $993 million in the third quarter. Net investment income rose 5.4% to $127 million. Total revenues were up 10.0% to $1.1 billion. Pretax operating earnings were $182 million, an increase of 12.3%. For the first nine months, premium income rose 10.8% to $2.9 billion. Net investment income increased 8.0% to $373 million. Total revenues were up 10.4% to $3.3 billion. Pretax operating earnings rose 13.9% to $523 million.

Aflac U.S. sales were consistent with our expectations. Total new annualized premium sales rose 11.0% to $368 million in the third quarter. Aflac U.S. sales in the third quarter were again led by our accident/disability product line and cancer expense insurance. In addition, our hospital indemnity category performed very well, with s
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SOURCE Aflac Incorporated
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