Ticker symbol: AFL

(ENLARGE)

Daniel P. Amos

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Where traded: New York Stock Exchange

Chief executive: Daniel P. Amos

Headquarters: Columbus

Business summary: Founded in 1955 by Amos' father and two uncles, Aflac, which had $15.4 billion in revenue last year, is a seller of supplemental life and cancer insurance. Its principal markets are Japan, which accounts for about 70 percent of business, and the United States. Amos spoke about the company's performance.

Q: After five years of steady growth the economy started to slow in 2007, due mainly to a slump in home construction and a crisis in the sub-prime mortgage market. The economy shows signs of slowing even more in 2008. How has that affected your markets and strategy for growing the business?

A: Generally, in a recessionary period, there is higher unemployment which makes it easier for us to recruit agents since more people are willing to try a commission-only position. While there may not be as many people at the workplace to purchase our products because of recession, we actually have more sales associates out selling which historically has offset the issue. We have historically seen some give-and-take in an economic downturn.

Q: What is it about your business or your business strategy that resulted in a Top 10 performance?

A: Aflac stock was up 38.2 percent in 2007 and we have increased operating earnings per diluted share by at least 15 percent, before the impact of currency translation for past 18 years.

Q: One result of the mortgage crisis was a virtual cutoff in credit in the broader financial markets. How has this affected your operations or planning? How have you responded?

A: It has not impacted us.

Q: One source of strength for many companies hurt by the domestic economy has been the continued growth of foreign economies. How much of your success was due to foreign sales or investments? Is this an area for future growth and investment by your company?

A: Seventy percent of Aflac's revenues are from Japan and we continue to see Japan as a tremendous growth market.

Q: Even if the economy does not sink into a recession – a broad downturn in many parts of the economy – analysts see slow growth and weakness ahead for an extended period. What is your forecast, or guidance, for the economy and especially the sectors that most affect your business?

A: For this year we have projected 14-15 percent operating earnings per diluted share growth, excluding currency translation.

Q: What's on the horizon for your company that you can talk about, such as an acquisition, stock offering or buyback, new products, expansion.

A: We repurchased 12.5 million shares in the first quarter and may repurchase up to 18 million by the end of the year. In addition we have just launched a new business-to-business campaign and we are constantly updating our products.

– Peralte C. Paul