Aflac Incorporated

Aflac Incorporated

AFL

$114.54

Updated: 12/10/2026, 02:40:57

Market Cap
$58.30B
Sector
Financial Services
Industry
Insurance - Life
Country
US
Stock valuation chart
One-year closing share-price history for AFL
Company Profile

Aflac Incorporated, operating through its various subsidiary companies, focuses on delivering supplementary health and life insurance policies. The firm's business activities are structured into two primary divisions: Aflac Japan and Aflac U.S. In Japan, the company offers a diverse range of insurance products, including coverage for cancer, medical expenses, income support for nursing care, and the distinct GIFT plan. This segment also provides traditional whole and term life insurance, along with savings-oriented plans like WAYS and child endowment products. Meanwhile, the Aflac U.S. division caters to the American market, furnishing policies that address cancer, accidents, short-term disability, critical illness, and hospital stays. Additionally, it provides dental, vision, long-term care, disability, and both term and whole life insurance options. Aflac distributes its comprehensive suite of products through multiple channels, which include dedicated sales associates, independent brokers, various corporate and individual agencies, and affiliated agencies. Established in 1955, the company maintains its corporate headquarters in Columbus, Georgia.

USD
NYSE
CEO: Daniel Paul Amos
Employees: 12,716
https://www.aflac.com
Asset Summaries
Latest generated summaries for AFL

No summaries found.

Detailed business
Evidence-backed facts extracted from the latest official annual filing.
AFL-10-k-fy2025.html8.5 MBtext/htmlENFiled 25/02/2026Period ended 31/12/2025

Business monitoring

Reported and calculated KPIs plus operational exposure disclosed in the FY 2025 filing.

Evidence-backed · 27 KPI observations

Revenue

N/A

FY — · Reported

Net income

$3.6B

FY 2025 · Reported

Gross margin

N/A

FY — · Reported

Free cash flow

N/A

FY — · Reported

R&D intensity

N/A

FY — · Reported

Share repurchases

$3.5B

FY 2025 · Reported

Earnings and cash generation
USD billions, directly sourced from inline XBRL; free cash flow is operating cash flow less capex.
Profitability and reinvestment
Margins and R&D as a percentage of revenue.
Top products and services
Products and services mentioned in the filing; a quantitative sales breakdown was not disclosed.

Other offerings mentioned without separate sales

Japan protection-type life: Whole Life / GIFT
Japan savings-type life: Tsumitasu, WAYS, Child Endowment
Product mix shift Japan third sector
Aflac U.S. growth products

Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.

Geographic footprint
What the filing identifies, separated by location role so partner manufacturing is not presented as Apple-owned factories.
1 named headquarters
0 manufacturing countries
0 individually named factories

Map layer

Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.

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Named headquarters Manufacturing partner country

Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.

How the business makes money

Core business

Aflac provides financial protection via supplemental health and life insurance in Japan and the U.S.; principal business is supplemental health and life insurance products

98%
Source evidence
“The Company’s principal business is supplemental health and life insurance products with the goal to provide customers the best value in supplemental insurance products in Japan and the U.S.”

Licensing footprint

Authorized to conduct insurance business in all 50 states, D.C., several U.S. territories, and Japan

97%
Source evidence
“The Company is authorized to conduct insurance business in all 50 states, the District of Columbia, several U.S. territories, and Japan.”

Japan revenue concentration

Aflac Japan's adjusted revenues were 53% of total adjusted revenues in 2025 (55% in 2024, 60% in 2023); 76% of total assets at Dec 31, 2025

98%
Source evidence
“Aflac Japan's adjusted revenues accounted for 53% of the Company's total adjusted revenues in 2025, compared with 55% in 2024 and 60% in 2023. The percentage of the Company's total assets attributable to Aflac Japan was 76% at December 31, 2025”

U.S. shifting customer demographics

U.S. customer demographics shifting toward millennials and diverse cultural communities; aging baby boomers impact financial security and healthcare demand

90%
Source evidence
“Customer demographics continue to shift, generating new opportunities across various consumer groups, including millennials and diverse cultural communities.”

Daido Life target customers

Cancer products offered to mainly small and medium-sized business owners, executives and employees via Daido Life

90%
Source evidence
“offer Aflac Japan's cancer products to mainly small and medium-sized business owners, executives and employees”

Japan traditional sales channel

~6,300 sales agencies and ~112,000 licensed sales associates at end of 2025

97%
Source evidence
“Aflac Japan was represented by approximately 6,300 sales agencies at the end of 2025, with approximately 112,000 licensed sales associates employed by those agencies”

Japan Post Group alliance

Japan Post alliance: ~20,000 postal outlets; Japan Post Insurance offers cancer products via 76 branches and 626 service departments

96%
Source evidence
“approximately 20,000 postal outlets as of December 31, 2025. Japan Post Insurance Co., Ltd. (Japan Post Insurance) offers Aflac Japan's cancer products through its 76 branches responsible for corporate sales and 626 service departments in charge of individual sales.”

Japan bank channel

Agreements with approximately 90% of total banks in Japan to sell Aflac Japan's products at December 31, 2025

96%
Source evidence
“At December 31, 2025, Aflac Japan had agreements with approximately 90% of the total number of banks in Japan to sell its products.”

Japan bank distribution channel

Agreements with 358 banks in Japan at Dec 31, 2025; bank sales represented 3.3% of Aflac Japan's new annualized premium sales in 2025

95%
Source evidence
“the Company had agreements with 358 banks to market Aflac's products in Japan. Sales through these banks represented 3.3% of Aflac Japan's new annualized premium sales in 2025”

Dai-ichi Life alliance

Dai-ichi Life alliance (since 2001): ~37,000 representatives offer Aflac Japan's cancer products

95%
Source evidence
“approximately 37,000 Dai-ichi Life representatives offer Aflac Japan's cancer products”

Daido Life alliance

Daido Life alliance (since 2013): ~3,700 representatives offering cancer products to SME owners, executives and employees

94%
Source evidence
“approximately 3,700 Daido Life representatives offer Aflac Japan's cancer products to mainly small and medium-sized business owners, executives and employees”

Japan Post Group distribution dependency

Japan Post Group has accounted for a significant portion of Aflac Japan's total sales in recent periods

90%
Source evidence
“its relationship with sales associates and other distribution partners, such as Japan Post Group, which in recent periods has accounted for a significant portion of Aflac Japan's total sales”

U.S. distribution model

U.S. commissioned sales force plus a salaried sales force of over 200 market directors and broker sales professionals; associates/brokers are independent contractors

90%
Source evidence
“Aflac has expanded its sales leadership team to include a salaried sales force of over 200 market directors and broker sales professionals”

Japan protection-type life: Whole Life / GIFT

Whole Life (low cash surrender value, non-smoker discounts) and GIFT (monthly family-support term life)

95%
Source evidence
“GIFT is a term life insurance product that provides beneficiaries, typically family members, with a fixed amount of money every month upon a breadwinner’s death or serious disability as family support.”

Japan savings-type life: Tsumitasu, WAYS, Child Endowment

Tsumitasu (launched June 2024), WAYS (conversion to medical/nursing/annuity), Child Endowment (educational benefits)

95%
Source evidence
“Tsumitasu Launched in June 2024, Tsumitasu is an insurance product designed primarily for post-retirement preparation, with asset formation features and coverage for nursing care and other benefits.”

Product mix shift Japan third sector

Aflac Japan premium shift from first sector savings to third sector cancer/medical and first sector protection products

90%
Source evidence
“the premium shift over recent years from first sector savings products to third sector cancer and medical products, as well as first sector protection products”

Aflac U.S. growth products

Aflac U.S. growth driven by life, disability, and dental and vision insurance products, which carry higher benefit ratios

90%
Source evidence
“driven by growth in life, disability, and dental and vision insurance products, all of which typically carry higher benefit ratios”

Operations and dependencies

Yen/dollar translation exposure

Yen/dollar fluctuations significantly affect reported results; a significant portion of business is conducted in yen and never converted into U.S. dollars

95%
Source evidence
“Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results.”

U.S. dollar-denominated investment strategy at Aflac Japan/Aflac Re

Aflac Japan holds USD-denominated investments across multiple asset classes to diversify from low JPY rates; hedged proportion reduced, increasing earnings volatility; Aflac Re USD investments exclusively investment-grade bonds

90%
Source evidence
“the Company has reduced the proportion of U.S. dollar-denominated investments that are subject to a currency hedge, and this proportion continues to be subject to change at the Company’s discretion”

U.S. labor market and turnover risk

Aflac U.S. has experienced elevated workforce turnover amid tight labor market; sustained shortage could increase operating costs

85%
Source evidence
“Although Aflac U.S. has not experienced any material labor shortage to date, it has experienced elevated levels of workforce turnover”

Positioning and strategy

Japan competition intensified post-deregulation

Competition intensified since 2001 Japan deregulation; more insurers offering stand-alone cancer and medical insurance

93%
Source evidence
“Since the deregulation of the Japan market in 2001, the number of insurance companies offering stand-alone cancer and medical insurance has increased, intensifying competition.”

Japan demographics demand driver

Japan's aging population and 100-year lifespans drive demand for supplemental health, asset formation, retirement and nursing care products

95%
Source evidence
“With Japan’s aging population and the rise in healthcare costs, supplemental health care insurance products remain attractive. Additionally, as Japan enters an era of 100-year lifespans, customers' needs for asset formation and retirement coverage, including nursing care, are increasing.”

Japan third sector leadership

Aflac believes it will remain a leading provider of third sector cancer and medical insurance in Japan

90%
Source evidence
“The Company believes Aflac Japan will remain a leading provider of third sector products such as cancer and medical insurance coverage in Japan, principally due to its experience in the market, well-known brand, low-cost operations, expansive marketing system and product expertise.”

Market-leading position and brand

Company defends and leverages market-leading position, powerful brand recognition and varied distribution in Japan and the U.S.

85%
Source evidence
“while defending and leveraging its market-leading position, powerful brand recognition and varied distribution in Japan and the U.S.”

Growth strategy

Growth strategy: develop supplemental health products, complement of voluntary/employer-paid products, sell where customers prefer to buy

95%
Source evidence
“The Company also offers a complement of other voluntary and employer-paid health and life insurance products to fit the needs of its customers.”

Capital deployment priorities

Maintain strong capital ratios in support of dividends; tactical capital deployment via share repurchases and opportunistic investments

90%
Source evidence
“The Company intends to maintain strong capital ratios in Aflac Japan and Aflac U.S. in support of its commitment to shareholder dividends while remaining tactical in its deployment of capital in the form of share repurchases and opportunistic investments.”

Risks, financing, and outlook

Aflac Japan 2026 benefit and expense ratio guidance

2026 Aflac Japan guidance: benefit ratio 60%-63%, expense ratio 20%-23%

95%
Source evidence
“the Company expects Aflac Japan to generate a benefit ratio in the range of 60% to 63% driven by favorable trends in morbidity experience, new product launches featuring lower benefit ratios, and the premium shift over recent years from first sector savings products to third sector cancer and medical products”

Aflac U.S. 2026 benefit and expense ratio guidance

2026 Aflac U.S. guidance: benefit ratio 48%-52%, expense ratio 36%-39%

95%
Source evidence
“the Company expects Aflac U.S. to generate a benefit ratio in the range of 48% to 52% driven by growth in life, disability, and dental and vision insurance products”

2026 outlook and strategy

2026 objectives: preserve solid pretax profit margins, increased sales from 2025 Japan product launches, growth across both segments

95%
Source evidence
“The Company's objectives in 2026 include preserving solid pretax profit margins with increased sales production achieved through the ongoing promotional efforts for products launched in 2025 in Aflac Japan and continued growth initiatives across both its Aflac Japan and Aflac U.S. segments.”

Corporate and other 2026 outlook

Corporate and other 2026: solid pretax adjusted earnings assuming stable U.S. rates; tax credit investment benefits recognized in lower income tax expense

85%
Source evidence
“The Company's objectives for Corporate and other in 2026 include achieving solid pretax adjusted earnings, assuming that U.S. interest rates remain stable and excluding the impact of tax credit investments”

Dividend increase 5.2%

Board announced 5.2% quarterly cash dividend increase in November 2025, effective Q1 2026

98%
Source evidence
“In November 2025, the board of directors announced a 5.2% increase in the quarterly cash dividend, effective with the first quarter of 2026.”

U.S. state insurance regulation

U.S. insurance subsidiaries subject to state insurance holding company regulation including prior notice/approval of dividends, transfers, and policy forms and rates

90%
Source evidence
“certain dividend payments from insurance subsidiaries and certain transactions between companies within the system, including management fees, loans and advances are subject to prior notice to, or approval by, state regulatory authorities”

June 2025 cyber incident in U.S. business

June 2025 cyber incident: exfiltration of certain personal information relating to a substantial number of individuals in the U.S. business; not yet determined to have a reasonably likely material impact

97%
Source evidence
“including the June 2025 cyber incident where the Company became aware of the exfiltration of certain personal information relating to a substantial number of customers, beneficiaries, employees, agents, and other individuals in the Company’s U.S. business”

Holding company dependency on subsidiary dividends

Parent Company depends on subsidiary transfers to meet debt service, common dividends, and buybacks; no assurance subsidiaries' earnings/assets will suffice

95%
Source evidence
“Because the Parent Company conducts its operations through its operating subsidiaries, the Parent Company depends on those entities for dividends and other payments to generate the funds necessary to meet its debt service and other obligations”

Japan business concentration risk

Concentration in Japan and substantial JGB holdings expose company to Japan sovereign credit deterioration, market volatility, and low JPY reinvestment rates

95%
Source evidence
“the Company has a substantial concentration of JGBs in its investment portfolio exposing the Company to credit deterioration and potential downgrades of JGBs”

AI heightens cybersecurity and business interruption risk

Use of AI by the Company and vendors could increase business interruption or cybersecurity breach risk; AI makes cyber-attacks more difficult to detect

93%
Source evidence
“The rapid evolution and increased adoption of artificial intelligence technologies may also heighten the Company's cybersecurity risks by making cyber-attacks more difficult to detect, contain, and mitigate.”

Nebraska and Japan dividend restrictions on subsidiaries

Aflac (Nebraska) requires prior approval for dividends above greater of statutory net income from operations or 10% of statutory capital and surplus; Aflac Japan dividend capacity defined under FSA/Japanese corporate law criteria

92%
Source evidence
“The Nebraska insurance statutes require prior approval for dividend distributions that exceed the greater of the net income from operations, which excludes net realized investment gains, for the previous year determined under statutory accounting principles, or 10% of statutory capital and surplus as of the previous year-end.”

Privacy and data security regulatory exposure

Regulated by APPI in Japan and HIPAA/state privacy laws in the U.S.; noncompliance could bring material fines, damages, FSA business improvement order, or license actions

92%
Source evidence
“Under Japanese laws and regulations, including the APPI, if a leak or loss of personal information by Aflac Japan or its business associates should occur... Aflac Japan may be required to file reports to the FSA; issue public releases explaining such incident to the public; or become subject to an FSA business improvement order”

Extensive multi-jurisdiction regulation

Regulated by FSA/MOF in Japan, state insurance regulators, BMA in Bermuda, SEC, NAIC, DOJ, CFTC, and U.S. Treasury/IRS; compliance failures could trigger corrective action or ratings downgrades

92%
Source evidence
“administered and enforced by a number of governmental authorities, that exercise a degree of interpretive latitude, including the FSA and Ministry of Finance (MOF) in Japan, state insurance regulators, the BMA in Bermuda, the SEC, the NAIC, the FIO”

Capital markets and economic sensitivity

Stressed or volatile global capital markets can adversely affect the Company's large investment portfolio, liabilities and derivatives

90%
Source evidence
“Stressed conditions, volatility and disruptions in global capital markets, particular markets, or financial asset classes can have an adverse effect on the Company, in part because the Company has a large investment portfolio and its insurance liabilities and derivatives are sensitive to changing market factors.”

Tax rate change exposure in U.S. and Japan

Effective tax rate may differ from estimates due to Japan/U.S. earnings mix, tax audits, uncertain tax positions, and changes in U.S. or Japan tax laws

90%
Source evidence
“Further, changes in U.S. or Japan tax laws or interpretations of such laws could increase the Company's corporate taxes and reduce earnings.”

Catastrophic event exposure

Catastrophic events (epidemics, natural disasters, war, terrorism) could cause claims volatility, lapse/premium grace-period effects, and impact 2026 Outlook guidance

90%
Source evidence
“Claims resulting from natural or man-made catastrophic events could cause substantial volatility in the Company's financial results for any fiscal quarter or year and could materially reduce its profitability”

Third-party vendor operational risk

Reliance on third-party vendors for business support functions creates operational risk; certain vendors operate outside the U.S., exposing outsourced operations to foreign political and military events

90%
Source evidence
“Since certain third-party vendors conduct operations for the Company outside the U.S., the political and military events in foreign jurisdictions could have an adverse impact on the Company’s outsourced operations.”

Monetary policy divergence including Bank of Japan

BoJ ended negative rates March 2024; yen-dollar rate differential contributes to FX hedging costs on Aflac Japan's USD investments

90%
Source evidence
“The continuing difference between U.S. dollar and Japanese yen interest rates also contributes to costs of hedging foreign currency exchange risk of U.S. dollar-denominated investments held by Aflac Japan”

Competitive landscape in U.S. supplemental insurance

Profitability erosion at major medical carriers has led them to enter Aflac's supplemental segments, bundling and discounting products to gain market share

90%
Source evidence
“given the profitability erosion some major medical carriers are facing in their core lines of business, the Company has seen a more competitive landscape as these carriers seek entry into Aflac's supplemental product segments”

Rating agency dependency constrains subsidiary dividend capacity

Subsidiary ability to pay dividends to Parent could be constrained by dependency on financial strength ratings from independent rating agencies

88%
Source evidence
“The ability of Aflac and Aflac Japan to pay dividends or make other payments to the Parent Company could also be constrained by the Company's dependency on financial strength ratings from independent rating agencies.”

Model and risk management framework limitations

Enterprise risk management and models (pricing, reserves, valuation, capital) rely on uncertain assumptions; unanticipated morbidity/mortality/longevity/persistency could limit effectiveness

88%
Source evidence
“In times of market stress, unanticipated market movements or unanticipated claims experience resulting from greater than expected morbidity, mortality, longevity, or persistency, the effectiveness of the Company's risk management strategies may be limited, resulting in losses to the Company.”

Climate change risk incorporated in credit review

Climate change risks are part of the credit review process and may adversely impact the value of securities held

85%
Source evidence
“While the assessment of risks related to climate change are part of the Company's credit review process, climate change-related risks may adversely impact the value of the securities”

Counterparty/reinsurance exposure to Aflac Re

Aflac Japan reinsures to Aflac Re, which has less capital than external counterparties previously used

85%
Source evidence
“Aflac Japan has entered into reinsurance transactions with Aflac Re, which has less capital than external counterparties with which the Company has conducted reinsurance transactions in the past”

Cybersecurity incident June 2025

Forward-looking risk cites uncertainty regarding impact of a June 2025 unauthorized network access incident

85%
Source evidence
“uncertainty regarding the impact of the incident involving unauthorized access to the Company’s network in June 2025”

Material exposure graph

Japan
Revenue Exposure

Aflac Japan generated 53% of adjusted revenues in 2025 and 76% of total assets; earnings tied to Japanese economy, JGBs, and yen exchange rate

Relevance 95·Dependency 90·Confidence 98
Source evidence
“Aflac Japan's adjusted revenues accounted for 53% of the Company's total adjusted revenues in 2025”
Japanese yen
Currency Exposure

Yen/dollar fluctuations materially affect reported earnings, cash flows and book value; yen weakening suppresses reported results.

Relevance 95·Dependency 85·Confidence 95
Source evidence
“fluctuations in the yen/dollar exchange rate can have a significant effect on reported results”
Cybersecurity risk
Regulatory Exposure

Cyber incidents, including the June 2025 exfiltration event, can cause regulatory sanctions, litigation, remediation costs, and reputational damage affecting U.S. and Japan operations.

Relevance 95·Dependency 80·Confidence 95
Source evidence
“the June 2025 cyber incident where the Company became aware of the exfiltration of certain personal information relating to a substantial number of customers, beneficiaries, employees, agents, and other individuals in the Company’s U.S. business”
Insurance regulation (U.S., Japan, Bermuda)
Regulatory Exposure

Nebraska, FSA/Japanese, and Bermuda regulation restrict subsidiary dividend capacity to the Parent, affecting debt service, dividends, and buybacks.

Relevance 90·Dependency 85·Confidence 92
Source evidence
“The FSA does not allow dividends or other payments from Aflac Japan unless it meets certain financial criteria as governed by Japanese corporate law.”
Japan
Demand Driver

Japan's aging population and 100-year lifespans drive demand for supplemental health, asset formation, retirement and nursing care products in the Aflac Japan segment.

Relevance 85·Dependency 80·Confidence 95
Source evidence
“With Japan’s aging population and the rise in healthcare costs, supplemental health care insurance products remain attractive.”
Japan Post Group
Customer Exposure

Japan Post Group is a major affiliated corporate agency distribution channel with ~20,000 postal outlets selling Aflac Japan's cancer products

Relevance 85·Dependency 70·Confidence 93
Source evidence
“the number of postal outlets of Japan Post Co. Ltd. (Japan Post Co.) offering Aflac Japan's cancer product increased, with approximately 20,000 postal outlets as of December 31, 2025”
Japan Post Group
Customer Exposure

Japan Post Group has accounted for a significant portion of Aflac Japan's total sales in recent periods

Relevance 80·Dependency 75·Confidence 90
Source evidence
“such as Japan Post Group, which in recent periods has accounted for a significant portion of Aflac Japan's total sales”
Legacy IT systems and cloud adoption
Technology Dependency

Business depends on technology systems for employers, policyholders, associates, and brokers; legacy systems require heavy investment, and IT transformation and cloud adoption increase cyber attack exposure.

Relevance 80·Dependency 75·Confidence 92
Source evidence
“As the Company pursues IT transformation and increased cloud adoption, it inherently exposes the Company to potential cyber-related attacks.”
Global capital markets volatility
Competitive Exposure

Large investment portfolio and market-sensitive insurance liabilities and derivatives expose results to capital market stress and volatility.

Relevance 80·Dependency 70·Confidence 90
Source evidence
“Stressed conditions, volatility and disruptions in global capital markets... can have an adverse effect on the Company”
Third sector cancer and medical products
Demand Driver

Premium shift from first sector savings to third sector cancer/medical products drives Japan benefit ratio outlook and 2026 sales growth.

Relevance 75·Dependency 65·Confidence 90
Source evidence
“the premium shift over recent years from first sector savings products to third sector cancer and medical products, as well as first sector protection products”
U.S. dollar
Currency Exposure

USD-denominated investments at Aflac Japan/Aflac Re create unmatched FX exposure vs JPY liabilities; hedged proportion reduced, increasing earnings volatility

Relevance 75·Dependency 60·Confidence 90
Source evidence
“Investing in U.S. dollar-denominated investments in Aflac Japan and Aflac Re creates an unmatched foreign currency exposure and related capital ratio volatility”
interest rates
Demand Driver

Rate differentials raise FX hedging costs; JGB values and JPY reinvestment rates sensitive to BoJ policy; rising rates also create Japan regulatory impairment risk

Relevance 75·Dependency 55·Confidence 90
Source evidence
“The continuing difference between U.S. dollar and Japanese yen interest rates also contributes to costs of hedging foreign currency exchange risk”
Artificial intelligence
Regulatory Exposure

AI adoption raises cybersecurity risk and the Company incurs expenses for AI development; AI also makes cyber-attacks harder to detect and mitigate.

Relevance 75·Dependency 55·Confidence 90
Source evidence
“The Company will continue to incur expenses related to, among other things, investments in digital capabilities and product innovation including the development and use of artificial intelligence (AI).”
Dai-ichi Life
Customer Exposure

Dai-ichi Life's ~37,000 representatives distribute Aflac Japan's cancer products

Relevance 75·Dependency 55·Confidence 93
Source evidence
“approximately 37,000 Dai-ichi Life representatives offer Aflac Japan's cancer products”
Japan insurance market deregulation
Competitive Exposure

2001 deregulation increased number of insurers offering stand-alone cancer and medical insurance, intensifying competition

Relevance 70·Dependency 55·Confidence 88
Source evidence
“Since the deregulation of the Japan market in 2001, the number of insurance companies offering stand-alone cancer and medical insurance has increased, intensifying competition.”
Cybersecurity incident
Legal Exposure

Cybersecurity incident created expense and potential future litigation, investigation, and elevated insurance premium costs.

Relevance 70·Dependency 50·Confidence 90
Source evidence
“expenses arising from potential litigation, governmental investigations, or enforcement actions; ... elevated cybersecurity insurance premiums”
Japan bank channel
Customer Exposure

Banks are a key source of insurance solutions in Japan; Aflac Japan has agreements with ~90% of banks

Relevance 70·Dependency 50·Confidence 92
Source evidence
“At December 31, 2025, Aflac Japan had agreements with approximately 90% of the total number of banks in Japan to sell its products.”
U.S. and Japan tax law changes
Legal Exposure

Changes in U.S. or Japan tax laws or interpretations, plus audit results and earnings mix, could raise the effective tax rate and reduce earnings.

Relevance 70·Dependency 50·Confidence 90
Source evidence
“If the Company's effective tax rate were to increase, the Company's financial condition and results of operations could be adversely affected.”
Daido Life
Customer Exposure

Daido Life's ~3,700 representatives distribute cancer products to SME owners and executives

Relevance 70·Dependency 45·Confidence 92
Source evidence
“Aflac Japan's alliance with Daido Life was launched in 2013, and approximately 3,700 Daido Life representatives offer Aflac Japan's cancer products”
Third-party vendor operations
Supplier Dependency

Outsourced business support functions expose Aflac to vendor outages, cyber incidents, and foreign political/military disruptions affecting operations, revenues, and costs.

Relevance 65·Dependency 60·Confidence 88
Source evidence
“The reliance on these third-party vendors creates a number of business risks, such as the risk that the Company may not maintain service quality, control or effective management of the outsourced business operations”
Life, disability, dental and vision products
Demand Driver

Growth in these higher benefit ratio products drives Aflac U.S. 2026 benefit ratio guidance of 48%-52% and revenue growth expected to reduce expense ratios over time.

Relevance 65·Dependency 50·Confidence 85
Source evidence
“driven by growth in life, disability, and dental and vision insurance products, all of which typically carry higher benefit ratios”
Economic Solvency Ratio (ESR)
Regulatory Exposure

ESR at 100% is the basis for supervisory intervention by Japanese authorities

Relevance 65·Dependency 50·Confidence 85
Source evidence
“The ESR level, which is the basis for supervisory intervention by the authorities, is set at 100%.”
Solvency Margin Ratio (FSA)
Regulatory Exposure

Japan FSA prescribes the SMR for all Japanese life insurers to measure ability to pay policyholder claims

Relevance 65·Dependency 50·Confidence 85
Source evidence
“This insurance ratio is prescribed by the Japan Financial Services Agency (FSA) and is used for all life insurance companies in Japan”
Major medical carriers
Competitive Exposure

Major medical carriers entering supplemental segments and bundling/discounting products to gain market share pressure Aflac U.S.

Relevance 65·Dependency 50·Confidence 85
Source evidence
“leverage their core benefit offerings by bundling and discounting products in order to gain market share”
Catastrophic events
Legal Exposure

Catastrophes can cause claims volatility, premium grace periods, lapse-rate volatility, infrastructure disruption, and changes to 2026 Outlook guidance.

Relevance 60·Dependency 40·Confidence 90
Source evidence
“These catastrophic events may cause changes to estimates of future earnings, capital deployment and other guidance the Company has provided to the markets in the 2026 Outlook section of Item 7. MD&A.”
U.S. millennial and diverse consumer segments
Demand Driver

Shifting U.S. demographics including millennials, diverse cultural communities and aging baby boomers create new product opportunities and demand.

Relevance 60·Dependency 40·Confidence 85
Source evidence
“Customer demographics continue to shift, generating new opportunities across various consumer groups, including millennials and diverse cultural communities.”
U.S. interest rates
Revenue Exposure

Corporate and other 2026 pretax adjusted earnings outlook assumes U.S. interest rates remain stable.

Relevance 55·Dependency 40·Confidence 70
Source evidence
“assuming that U.S. interest rates remain stable and excluding the impact of tax credit investments”
Japanese banks (358 agreements)
Customer Exposure

Bank channel (3.3% of Japan new annualized premium sales in 2025) exposed to financial institution health

Relevance 55·Dependency 35·Confidence 95
Source evidence
“the Company had agreements with 358 banks to market Aflac's products in Japan. Sales through these banks represented 3.3% of Aflac Japan's new annualized premium sales in 2025”
U.S. labor market tightness
Cost Driver

Tight labor market and elevated turnover could increase Aflac U.S. operating costs and impair hiring/retention

Relevance 50·Dependency 40·Confidence 85
Source evidence
“These conditions, together with higher levels of inflation may result in increased operating expenses”
Full company information
Latest profile, trading, valuation, and identifier data stored for AFL.
Share price
$114.54
Market cap
$58.30B
Exchange
NYSE
Currency
USD
CEO
Daniel Paul Amos
Employees
12,716
IPO date
17/03/1980
Beta
0.556
Last dividend
$0.00
Day range
$114.46 – $115.80
52-week range
$105.43 – $130.22
1-day performance
-0.35%
1-year performance
8.64%
Current drawdown (1Y)
-12.04%
CIK
0000004977
CUSIP
001055102
ISIN
US0010551028
Created
07/12/2025, 01:57:31
Last update
12/10/2026, 02:40:57

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