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| American Fidelity Educational Services (AFES) stands at the head of the class in
providing supplemental insurance products, investment products and financial services
to the educational community.
AFES provides our Customers the financial security they need
and deserve, such as our disability income protection endorsed by the National
Education Association. We enroll and administer more than 3,600 Section 125 plans
for school districts across America and span the nation with licenses in 49 states
and the District of Columbia, plus offices or manpower in 37 states.
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| In 2006, AFES put one of our best years ever on the books. Sales goals were
surpassed as our field staff produced 119% of projected sales for the year and
Target performance became a reality by year-end.
These tremendous financial results were due to the dedication
and perseverance demonstrated by all AFES Colleagues.
With a goal of assuring growth in our product lines and in our Colleagues, our
financial results were in direct correlation to the outstanding sales and service
demonstrated by our field and home office manpower.
A focus on field leadership led to better recruiting, and selective hiring and
provided the solid foundation for great sales results.
Our new territories in Florida and Illinois produced better
than expected results and improved training across all
product lines gave the platform to sell and service a total portfolio of products.
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| In order to continuously improve our Customer service and meet our sales goals,
our field manpower will grow at its current rate.
This sales growth will provide the foundation for AFES in 2007.
The sustained development of our Florida acquisition will allow us more sales
premium growth opportunities.
Educational growth of our Colleagues and annuity strategies to comply with
government regulations, along with the development of a web-based electronic
enrollment platform, will allow AFES to position itself as a leader in the
education market in 2007 and beyond.
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