AFLAC Analysis Draft Essay Example
AFLAC Analysis Draft Essay Example

AFLAC Analysis Draft Essay Example

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  • Pages: 4 (987 words)
  • Published: June 19, 2016
  • Type: Paper
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To analyze Aflac, you have the option to either visit their website ( or access it directly. Information can also be obtained from Hoovers through the library's electronic databases using a password. Additionally, it is recommended to refer to articles published in the Wall Street Journal within the last 30 days, which are available online.

It is important to emphasize that the use of information from a third party is prohibited. This prohibition extends to situations where an article published by a trade journal is referenced by Hoover's, the company website, or the WSJ; such information must not be utilized.

Your work will be evaluated using the 25-question tool taught in the course, which may require additional information to assist in analyzing the case.

justify;">You are responsible for using the information from the mentioned websites, but you will not be held liable for any unavailable material on these sites.

Although I acknowledge that this may restrict your capacity to fully tackle certain matters, it is recommended that you merge your personal experience with the online resources found on these websites and give it your all. To help you get started, please adhere to the template provided on the subsequent pages, as headings have already been included.

It is crucial to conduct web research early as websites and Internet service providers may have occasional downtime. Any temporary internet issues will not extend the due date, regardless of when they happen.

It is important to include the URL in a footnote for all references. Only the URL is required for this exam, but complete citations

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are needed for the team project. Direct quotes should not be used in this assignment, and all sources provided above should be used and cited.

The case analysis section below does not include the introduction heading. It is not necessary to introduce the firm for this exam.

When analyzing a company with multiple business units, it is crucial to primarily concentrate on the main business unit in your case analysis. If one business unit generates most of the company's revenues, you can mention this in the industry analysis section and give more attention to that specific industry throughout your analysis. Nevertheless, it is important to acknowledge the other business units in the corporate strategy section and possibly in other sections as well.


The full exam document you submit should not exceed 12 single-spaced pages. Please use Calibri 10 font and the provided margins. This instruction page is counted in the page limit, so do not delete anything from it. Begin your analysis on the next page.

Please utilize the provided pages as a reference for your exam. However, do not assume that they suggest specific lengths for each section. When allocating space, keep in mind the overall page limit for the exam. Rename this file and use it as a basis to complete your exam.

To ensure the proper formatting of your exam, please follow these guidelines:

  • Leave a blank line between paragraphs.
  • Avoid changing the fonts, margins, or spacing.
  • Note that unauthorized alterations may result in penalties.
  • Before submitting your exam, make sure everything is in Arial 10 format.

Please note that all papers must be submitted to

and must receive a rating of 25% or lower.

Identification of the Industry

The America Life Assurance Company of Columbus, also known as AFLAC Incorporated, is a Group that specializes in providing health and life insurance incentives. AFLAC offers a variety of services including affordable healthcare plans, medical and sickness assistance such as cancer plans, and general health check expense plans [1].

AFLAC Incorporated provides accident plans that cover different types of injuries and traumas resulting from accidents. They also offer living benefit plans for investment and planning purposes. Moreover, AFLAC offers specific accident plans as well as sickness plans tailored for cancer (AFLAC Incorporated).

AFLAC Incorporated offers lump sum benefits for patients diagnosed with internal cancer. Their hospital indemnity services also cover hospitalization for accidents or general sickness.

AFLAC provides various additional health insurance services, such as intensive care unit patient care, disability coverage for accident-related disabilities, hospital indemnity incentives, long-term care options, specialized services for short-term disability cases, and dental treatment plans.

The profitability of the industry

AFLAC Incorporated has observed a combination of outcomes in recent times, with the majority showing a decrease in profit as a result of various factors.

A major decline in profit was experienced by AFLAC Incorporated during the fourth quarter of 2003. This decline, which amounted to a 61 percent decrease, was primarily due to losses resulting from the collapse of Parmalat, an Italian dairy company. Prior to its downfall, AFLAC had made significant investments in Parmalat ("AFLAC profit falls on Parmalat scandal")[3].

AFLAC Incorporated incurred a loss of $257 million when it sold its stocks in Parmalat, which collapsed,

resulting in the profit decline for AFLAC ("AFLAC profit falls on Parmalat scandal").

Parmalat was being investigated for allegations of its managers' involvement in a fraud worth millions of dollars. This scandal led to AFLAC selling its $428 million stake in Parmalat in December 2003 after its credit rating was downgraded and considered junk status.

In 2008, AFLAC Incorporated experienced a decrease in profit due to its investment plans, despite benefiting from a stronger yen compared to the dollar (AFLAC profit dips 19% in 2008)[4].

According to AFLAC profit dips 19% in 2008, the Group's net income in 2008 was $1.3 billion with earnings per share at $2.62. This represents a decline from the previous year's net income of $1.6 billion and earnings per share of $3.31, as mentioned by AFLAC profit dips 19% in 2008.

According to the article "AFLAC profit dips 19% in 2008", AFLAC Incorporated saw a decrease in profits in 2008 because of higher investment losses compared to the gains they had in 2007. The company experienced investment losses of $655 million in 2008, whereas they achieved gains of $19 million in the previous year.

The annual income statement for the past three years, Table 1, reveals additional details regarding AFLAC's profitability.

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