In the United States, Aflac has earned the distinction of being the number one provider of voluntary insurance at the worksite.
As a current policyholder and also a former officer at Aflac, I am often asked about Aflac Japan and the huge success that it has been. As I am discussing Aflac Japan with people, many times, those who are asking don’t realize the success of Aflac U.S. and its contribution to Aflac Incorporated. As I was listening to the investor call this morning, I decided to write about it to help others better understand Aflac U.S. and some of the numbers that drive the success.
Over the last 11 years, covering from 2006 -2016, Aflac U.S. assets have grown from $10,249 billion to $19,453 billion.
In that same time period, Aflac U.S. revenues have increased from $4,027 billion to $6,167 billion in 2016.
Aflac U.S. pretax profits have grown from $585 million in 2006 to $1,208 billion as of December 31, 2016.
There are many factors that drive the success, for example, lower claims cost, controlling operational expense, or investment income, but the one that I look at closely is, “the average number of weekly producers, i.e., agents & brokers.”
In 2016, the “average weekly producer equivalents were 9,061,” while the average weekly producer production was $163,501, according to Aflac U.S. investor documents. While the average weekly producer number has decreased each year since 2012, the average production number has increased the last seven years.
Aflac U.S. continues to make adjustments as needed to prepare themselves for the future and the forever changing voluntary worksite market. It will be interesting to watch from the sidelines and watch their success in 2017 and beyond.
