Aflac (AFL) Investor Presentation summary

Strategic overview and market position

• Maintains leadership in supplemental health insurance in both the U.S. and Japan, with over 22 million policies in force in Japan and a 24% U.S. market share, more than 2.7x the nearest competitor.

• Broad, diversified distribution network includes exclusive and non-exclusive agencies, Japan Post, financial institutions, and alliance partners.

• Focuses on product innovation, integrating services for different life stages, and targeting younger demographics with new offerings like Miraito and Tsumitasu.

• Strong brand reputation, recognized as one of the world's most ethical companies and a member of the Dow Jones Sustainability Indices.

• Significant community impact through charitable contributions and support programs for children and families.

Financial performance and capital management

• Reported $18.9 billion in revenues and $5.4 billion in net earnings for 2024, with adjusted earnings of $4.1 billion and an adjusted ROE of 14.4%.

• Maintains strong capital ratios: >240% ESR in Japan and >600% RBC in the U.S., with adjusted leverage at 22.5% as of June 2025.

• Adjusted debt increased to $8.1 billion in 1H25, with total shareholders' equity at $27.2 billion.

• Consistent dividend payments to the holding company and disciplined capital deployment.

• High-quality, diversified investment portfolio with a focus on fixed maturities and defensively underwritten private loans.

Segment highlights: Japan and U.S.

• Japan segment leads in cancer and medical insurance, with a three-year management strategy and tailored marketing to core products.

• Launched innovative products like Miraito (cancer insurance) and Tsumitasu (asset formation/nursing care) to address demographic shifts and customer needs.

• Japan's net earned premiums remain stable, with a 93.7% premium persistency rate and a pretax profit margin of 27.7% in 1H25.

• U.S. segment maintains high market share in worksite supplemental health, with a robust product portfolio and opportunities for growth in underpenetrated employer segments.

• U.S. net earned premiums and persistency rates remain strong, with a pretax profit margin of 21.6% in 1H25.