Profile: AFLAC Incorporated (AFL)

Aflac Incorporated, incorporated in 1973, is a general business holding company and acts as a management company, overseeing the operations of its subsidiaries by providing management services and making capital available. Its principal business is supplemental health and life insurance, which is marketed and administered through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). Aflac’s insurance business consists of two segments: Aflac Japan and Aflac U.S. Aflac Japan sells supplemental insurance products, including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans and annuities. Aflac U.S. sells supplemental insurance products, including accident/disability plans, cancer expense plans, short-term disability plans, sickness and hospital indemnity plans, hospital intensive care plans, fixed-benefit dental plans, vision care plans, long-term care plans and life insurance products. In October 2009, the Company completed its acquisition of Continental American Insurance Company.

Insurance Products-Japan

Aflac Japan’s medical product, EVER, offers a basic level of hospitalization coverage. Gentle EVER, which the Company introduced in August 2007, which to help consumers who may have a health condition that would exclude them from purchasing other EVER products. In November 2008, Aflac Incorporated introduced a new medical product in Japan, Sanjuso. Sanjuso is a single-premium product that provides lump-sum payments upon the diagnosis of cancer, heart attack or stroke, as well as a death benefit. The cancer insurance plans the Company offers in Japan provides a lump-sum benefit upon initial diagnosis of internal cancer and a fixed daily benefit for hospitalization and outpatient services related to cancer, as well as surgical, convalescent and terminal care benefits.

In September 2007, it introduced a new product called Cancer Forte. Cancer Forte pays outpatient benefits for 60 days. It also incorporates two new features. First, if a policyholder is diagnosed with cancer for the first time, the Company pays that policyholder an annuity from the second year through the fifth year after diagnosis. The second benefit, Premier Support, where Aflac arranges for a third party to provide policyholders with counseling and doctor referral services upon their cancer diagnosis. For consumers who had the earlier cancer insurance product, the Company introduced a special bridge policy during the year ended December 31, 2008 that allows existing policyholders to upgrade their coverage to that of Cancer Forte.

Its Rider MAX product provides accident and medical/sickness benefits as a rider to its cancer policy. Some of the life products that the Company offers in Japan provide death benefits and cash surrender values. These products are available as stand-alone policies and riders. Some plans have features that allow policyholders to convert a portion of their life insurance to medical, nursing care, or fixed annuity benefits at a predetermined age. The Company also offers fixed-income annuities and care policies.

Insurance Products-U.S.

Aflac U.S. offers an accident and disability policy to protect against losses resulting from accidents. The accident portion of the policy includes lump-sum benefits for accidental death, dismemberment and specific injuries, as well as fixed benefits for hospital confinement. Optional disability riders are also available. Short-term disability policies provide disability benefits with a variety of elimination and benefit period options. The longest such benefit period offered is two years. The Company’s U.S. cancer plans are designed to provide insurance benefits for medical and non-medical costs that are not covered by medical insurance. Benefits include a first-occurrence benefit that pays an initial amount when internal cancer is first diagnosed; a fixed amount for each day an insured is hospitalized for cancer treatment; fixed amounts for radiation, chemotherapy and surgery, and a wellness benefit applicable toward certain diagnostic tests. In August 2007, the Company introduced its cancer product, Maximum Difference. This new cancer indemnity plan incorporates coverage for medical advances in cancer prevention, diagnosis, treatment and the ways cancer patients may now receive their care.

Its hospital indemnity products provide fixed daily benefits for hospitalization due to accident or sickness. Indemnity benefits for inpatient and outpatient surgeries, as well as various other diagnostic expenses, are also available. The Company’s sickness indemnity plan provides a fixed daily benefit for hospitalization due to sickness and fixed amounts for physician services for accident or sickness. Aflac U.S. offers a specified health event policy that gives consumers a choice of three benefit and premium levels. One of the levels combines the specified health event policy with its intensive care plan. Aflac U.S. offers term and whole life policies sold through payroll deduction at the worksite and various term and whole life policies on a direct basis.

The Company’s life insurance portfolio, the Life Protector Series offers term policies with varying duration options and a new whole life policy with additional benefits. The Company offers a series of fixed-benefit dental policies, providing various levels of benefits for dental procedures, including checkups and cleanings. Plan features include a renewal guarantee, no deductible and no network restrictions. Aflac U.S. offers Vision Now, which provides benefits for serious eye health conditions and loss of sight. Vision Now includes coverage for corrective eye materials and exam benefits. It also offers other health insurance products, including tax qualified and non-qualified long-term care plans.