Average Aflac U.S. Producer Productivity Increases 7.2%
Aflac is counting on brokers to go after big employers, and career agents to court smaller employers.
Aflac Inc. increased its average weekly sales production in the United States in the second quarter.
The number of U.S. career agents fell to 4,287 in the during the quarter, down 5.3% from the total for the second quarter of 2017.
But the number of newly recruited U.S. agents and brokers increased 26%, year-over-year, to 797.
Average weekly production per U.S. producer increased 7.2%, to $43,418.
(Related: Aflac Execs Talk About U.S. Distribution Efforts)
The products accounting for more than 20% of new annualized premium sales volume were accident insurance, at 29.5%; short-term disability insurance, at 23.5%; and critical care insurance, at 20.8%.
Life insurance sales accounted for just 5.7% of the total.
U.S. amortization of deferred policy acquisition costs, a figure that includes producer compensation expenses, increased 6%, to $123 million.
Earnings
Aflac included those figures in a financial supplement it posted along with its earnings for the second quarters.
The company as a whole is reporting $832 million in net income for the latest quarter on $5.6 billion in revenue, up from $713 million in net income on $5.4 billion in revenue for the second quarter of 2017.
Information about the Columbus, Georgia-based company’s earnings, including a link a recording of a company conference call with securities analysts, is available here.
Conference Call
During the analyst call, Daniel Amos, Aflac’s chief executive officer, said the company has been increasing, and expects to continue to increase, broker sales.
Amos said Aflac is counting on career agents to sell to employers with fewer than 100 employees, and brokers to reach larger employers.
The company own sales reps have been doing a good job of reaching out to brokers, Amos said.
“As a result, Aflac is seeing a high rate of growth through brokers, and strong sales growth for our group products,” Amos said.
— Read Aflac Says Its Agents Are Selling More, on ThinkAdvisor.
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