Aflac (AFL) Morgan Stanley US Financials Conference 2026 summary

Strategic direction and business performance

• Focus remains on two major markets: Japan and the U.S., with innovation driving growth in both regions.

• In Japan, new products like Tsumitasu, Miraito, and Anshin Palette target younger demographics and address community health needs.

• U.S. operations have seen strong growth in group products, with earned premium growth outpacing the market and expansion into new product lines.

• Reinsurance capabilities in Bermuda are being leveraged for capital efficiency and to offer solutions to other insurers.

• Strategic discipline in pricing and underwriting is emphasized to maintain profitability and shareholder value.

Japan market dynamics and competitive positioning

• Japan faces demographic challenges with a shrinking, aging population and flat to slightly negative underlying demand.

• Product innovation is aimed at younger customers to build long-term loyalty and persistency.

• Earned premium in Japan declined 1.3% in Q1, but plans are in place to stabilize and return to slight growth.

• Profitability is prioritized over aggressive growth, with expanding pre-tax margins reflecting disciplined underwriting.

• Reinsurance transactions, such as with Japan Post Insurance, diversify risk and enhance capital efficiency.

U.S. growth, product mix, and competition

• Group product sales now represent a significant share of U.S. business, growing from 6% in 2010 to 43% in 2025.

• Strong broker relationships and brand recognition drive wins in large employer segments.

• Operational improvements led to a 48.8% growth in dental products, with a focus on bundling offerings for a unified customer experience.

• Competitive responses include price competition and agency recruitment, but underwriting discipline is maintained.

• Margins remain strong, with Q1 above 20%, and expense ratios below 40%, supporting stable or increasing income.