Aflac Reports $810 Million Quarterly Profit
By Tony Adams, Columbus Ledger-Enquirer | |
McClatchy-Tribune Information Services |
Specifically, the company is making a dramatic change in its sales hierarchy, switching from the longtime use of "state sales coordinators" -- independent contractors paid strictly on commission -- to
"From a financial perspective, Aflac U.S. continued to perform well in the second quarter,"
The changes, which take effect
"In order to drive future sales growth, we believe it is crucial to ensure all levels of our sales hierarchy have the potential to earn the best compensation in the industry," Amos said. "At the same time, we must more effectively and consistently execute on the U.S. sales strategy across all states."
For Amos, this is one of the more dramatic moves he has made in the U.S. operations since becoming CEO in 1990 and chairman in 2001. He joined
The sales move comes with the U.S. operation reporting revenue of
Those numbers come with the company facing additional pressure in
The company is working to get its supplemental health and life insurance policies sold in 20,000 of the
On Tuesday,
Amos said with sales from "traditional agencies slowing down" and with the sales comparison in the second half of this year going up against the rollout of a new product in August a year ago, the next six months will be challenging for the firm's financial books.
"Taking these factors into account, we now anticipate third sector sales for the full year will trend toward the low end of our expectation of a 2 percent to 7 percent increase," he said.
Thus, he said, the need for making the moves necessary to rev up U.S. sales to "drive future sales growth," the CEO said.
Companywide during the quarter, total revenue was
As is typical,
Taking out those one-time items,
That beat the operating earnings consensus of
The company also remains a cash machine, reporting total investments and cash of
___
(c)2014 the Columbus Ledger-Enquirer (Columbus, Ga.)
Visit the Columbus Ledger-Enquirer (Columbus, Ga.) at www.ledger-enquirer.com
Distributed by MCT Information Services
Wordcount: | 871 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News