Aflac Raises Commissions To Bolster Sales in Japan.Investment analysts are giving rave reviews to Aflac Inc.'s plan to hike its first-year adj. 1. Being in the first year of an experience especially in a U. S. high school or college; - of a person. Adj. 1. first-year - used of a person in the first year of an experience (especially in United States high school or college); "a commissions for its cancer life insurance policies in Japan. Aflac, Columbus, Ga., announced a new commission structure that would increase first-year commissions for its agents from 45% to 65%, with renewal commissions being limited to nine years instead of unlimited commissions paid over the life of the policy. This makes Aflac's first-year commissions 50% higher than its nearest competitor and is likely to increase Aflac Japan's sales growth more than 13%, the company's target, said Caitlin Long, an equity analyst for Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. . Aflac will give its agents the option of taking either the old commission structure or the new commission structure. Mark Lane, an equity analyst with William Blair
Kriss Cloninger, Aflac's executive vice president and chief financial officer, said the change in commission structure was a "pre-emptive pre·emp·tive or pre-emp·tive adj. 1. Of, relating to, or characteristic of preemption. 2. Having or granted by the right of preemption. 3. a. measure that we're taking to protect our agency force and assist with our recruiting effort as we move to deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. in Japan in 2001." The switch should cost the company more in the short term, but it will save money in the long term, Long said. |
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