Summary
Aflac Incorporated announced on March 10, 2009, that it was not selected to continue providing its products to Wal-Mart employees through payroll deduction starting in 2010. This development, stemming from a completed bid process, means Aflac's current contract with Wal-Mart will conclude on December 31, 2009. While this represents the loss of a significant client, Aflac has provided context on its financial impact. Wal-Mart accounted for a relatively small portion of Aflac's total business, specifically 0.6% of total consolidated annualized premiums in force as of December 31, 2008, and 1.1% of consolidated new annualized premium sales in 2008. Importantly, Wal-Mart employees will have the option to maintain their existing Aflac policies on a direct-bill basis, mitigating the complete loss of these customers.
Key Highlights
- 1Aflac will cease providing products to Wal-Mart employees via payroll deduction after December 31, 2009.
- 2Wal-Mart represented a minor portion of Aflac's total consolidated annualized premiums in force (0.6% as of Dec 31, 2008).
- 3Wal-Mart accounted for 1.1% of Aflac's consolidated new annualized premium sales in 2008.
- 4Wal-Mart employees can continue their Aflac policies directly on a direct-bill basis.
- 5The loss is related to a completed bid process and does not indicate issues with Aflac's products.
- 6The information is provided under Regulation FD, not considered 'filed' for Section 18 purposes.