Aflac exec: ‘2009 was one of our most successful years’

By Mary Welch

For the AJC

Paul S. Amos II is president and chief operating officer of Columbus-based Aflac U.S., where he oversees the supplemental insurer’s U.S. strategic plan.

He spoke recently to The Atlanta Journal-Constitution about why revenue rose last year — and why the Aflac duck is now snowboarding.

Q: You just released your fourth quarter results. How did it go?

A: Our earnings were extraordinarily good. In fact, 2009 was one of our most successful years. For both the fourth quarter and year-end, our net earnings and revenues were up.

Q: How did you escape the recession?

A: We followed our model of continuing to meet the needs of our customers both in Japan and the United States so that they will have money at their discretion in case they need it. That’s what we do.

Q: Is Japan still a strong market?

A: We had an outstanding year in sales, especially in the fourth quarter. It exceeded our expectations. We have introduced new products in Japan besides cancer coverage. Last year we launched a revised medical product and saw a tremendous increase in sales. Stand-alone medical was the number one product category in the fourth quarter, accounting for 43 percent of total new sales. Ordinary life insurance sales also remained strong; it rose 45 percent in the fourth quarter. Last year we introduced a child endowment product that was very well received.

Q: How was the U.S. market?

A: Sales were disappointing. Our sales here are directly correlated to the economy and unemployment. Ninety-five percent of our sales take place at the workplace through payroll deductions. Businesses had fewer workers and new hires, so it directly impacted our sales. New annualized premium sales were down both for the fourth quarter and the year by a little more than 6 percent.

Q: Does Aflac intend to enter new markets like China or Brazil?

A: Fifty-one percent of the worldwide insurance market is in Japan and the U.S. We certainly look at all opportunities, but our greatest opportunities are in these two countries. We’re in the right place looking for growth opportunities.

Q: For instance?

A: For instance, in Japan, our new premium sales have benefited from continued improvement through the bank channel. More than 350 banks offer Aflac products and sales were up dramatically. In this country, let’s face it. The Hispanic market is the fastest growing market in the country and we are doing everything possible to get up to speed to reach that market.

Q: How long can the Aflac duck be an effective marketing tool?

A: We love the duck. Research says the duck can be used in perpetuity as long as we move him along and don’t keep him stagnant. So in recent commercials we had the duck in digital format and now we’re back to the classic duck. The key challenge is that about 91 [percent] to 92 percent of all Americans know the Aflac duck and the Aflac name. But less than 5 percent know what we do.

Q: How will you address that?

A: The duck now has to tell everyone what we do and why they need us. Our new campaign is “You don’t know quack.” We introduced a spot on the opening night of the Olympics that has the duck snowboarding but someone explains what we do. I think we’ll get strong buzz around “You don’t know quack.”

Q: You seem to still rely heavily on traditional media. Why?

A: That true, but we are starting to experiment more in social media. It’s evolving. The duck has his own Facebook page with about 170,000 friends. It’s a very active site. The duck also has a twitter account and tweets.

Q: Your grandfather founded the company and your father is CEO. Did you always know you would go into the business?

A: No. I was a lawyer. I remember what happened so vividly. Another lawyer was excited about staying up all night writing. I admired that greatly but knew it wasn’t me. I wanted to be as a passionate about something as he was. I joined Aflac. It was the right place for me.

Q: Do you hope your children will follow you?

A: Right now the only thing I hope is that my children will get to bed on time.

Q: Once you joined, didn’t you know you’d end up in the executive suite?

A: Aflac is not a private company. All of us report to the board and stockholders. I started out as the state sales coordinator for Georgia-North. In two years, I grew it to become the top producing territory. I think I was fast-tracked, but my performance helped that as well.

Q: You are very involved in bone marrow transplants. How did that happen?

A: I heard how a bone marrow transplant from an Aflac sales agent saved the life of a 3-year-old. I became interested and am a donor. All it takes is taking a swab test and a couple of hours on a dialysis machine to save someone’s live. We started a bone marrow registry program at Aflac.

Q: You are a member of the governor’s Water Task Force. Are you interested in politics?

A: Personally, no. But if I have to get involved because it affects my company, then I will. Water is one of those issues. I think a practical solution that will work for politicians, the business community and environmentalists can be worked out. It’s a unique opportunity.

Meet Paul Amos

Age: 34

Title: President and chief operating officer

Family: Wife, Courtney; children, Dan, 8; Mansell, 5; and Knox, 2

Education: Bachelor’s degree in economics, Duke University; master’s degree in business administration, Emory University; juris doctor degree from Tulane University

Hobbies: Running. Playing with my kids.

Three things on his Bucket List: See Duke University win a national basketball championship; run a marathon; ride in a fighter jet

Hero: My dad

Favorite movie: “Braveheart”