Aflac Investor Relations Material

Aflac Inc. is an American insurance company primarily operating in the US and Japan headquartered in Columbus, Georgia. The name of the company is an Acronym for American Family Life Assurance Company of Columbus and its shares have been trading on the NYSE since 1974. Aflac is one of the largest providers of supplemental insurance in the US and underwrites a wide array of insurance policies, and the Aflac duck, the company mascot, is one of the most recognizable in the American business landscape

Aflac was founded in Columbus, Georgia in 1955. Started by the Amos brothers – John, Paul, and Bill – the company began with the idea to support consumers through financial protection during unexpected health events. Recognizing a hole that needed to be plugged in the market, Aflac introduced a specialized cancer insurance policy during the 1960s. One of Aflac’s major brand-recognition milestones came in the late 1990s and early 2000s with the introduction of the Aflac Duck. This advertising campaign played a pivotal role in embedding Aflac into the collective consciousness of American consumers and helped to establish the company among the most recognizable insurance companies in the country together with names like Allstate, Progressive, and Geico (a subsidiary of Berkshire Hathaway)

Aflac specializes in providing supplemental insurance. It is a type of coverage that complements primary insurance, designed to fill the financial gaps that standard policies might leave unaddressed. Rather than replacing traditional health, life, or property insurance, supplemental policies offer additional benefits to ensure that policyholders are adequately protected against unforeseen expenses.

For instance, while standard health insurance policies typically cover medical bills and hospital stays, they may not account for loss of income during prolonged illness or recovery. This is where supplemental policies, like critical illness or accident insurance, come into play. They provide a lump sum or daily cash benefits directly to the insured during such times, helping them manage out-of-pocket costs and living expenses. In essence, supplemental insurance acts as a financial safety net, ensuring that individuals are not burdened by unexpected costs that their primary insurance doesn’t cover.

Aflac's business in Japan is a cornerstone of its global operations. Since establishing its presence in 1974, Aflac has become a major player in Japan's insurance market. While in the U.S., Aflac is primarily recognized for supplemental health and life insurance, in Japan, it has a broader spectrum including child endowment and fixed annuity products.