2022 Business and Sustainability Report
2022 BUSINESS & SUSTAINABILITY REPORT
About
Our Promise
For more than 67 years, Aflac has had the unique privilege of helping to provide financial protection and peace of mind to our millions of policyholders and customers worldwide. While many things have changed over the decades, one thing that has not wavered is Aflac's commitment to all of its stakeholders. Each and every day, we deliver on this commitment to be there for our policyholders when an illness, health event or life situation occurs-those challenging times when our policyholders need us most. We are dedicated to championing people's pursuit of their dreams and careers as employees and independent sales agents and through our diverse distribution networks. We are committed to our decades-long track record of creating value for our shareholders for the investment and trust they place in
To provide customers with the best value in supplemental insurance products in
Long-Term Growth Strategy
RELEVANT |
EXPANSIVE |
CUSTOMERS |
PRODUCTS |
DISTRIBUTION |
Table of
Contents
4 SustainabilityAflac at
- About This Report
- About Aflac
U.S. andAflac Japan
22 |
Financial Highlights |
26 |
HighlightsSustainability |
30 |
Governance |
35 |
Protecting Our |
Customers and Data |
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with Cybersecurity |
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38 |
ReportPolitical Activity |
39 |
Investments |
43 |
Environment |
48 |
Workforce |
58 |
Care on Purpose: |
Aflac's Strategic |
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Philanthropy |
|
70 |
Appendix |
- LIMRA 2021 U.S. Supplemental Health Insurance Total Market Report
1 |
2022 BUSINESS & SUSTAINABILITY REPORT |
ABOUT AFLAC |
GOVERNANCE |
INVESTMENTS |
ENVIRONMENT |
WORKFORCE |
PHILANTHROPY |
APPENDIX |
A Message
from
Every day we are open for business, we are reminded that one |
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thing has not changed since our founding in 1955: People desire |
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the best health care available and protection from financial |
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hardship. Now more than ever, we believe consumers are |
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realizing that it is increasingly harder to accomplish this on their |
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own. In a complex health care environment that has produced |
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incredible medical advancements-and incredible costs-it's more |
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important than ever to have a partner. With Aflac's inventive and |
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compassionate approach to offering relevant products and |
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solutions, we believe we are that partner. |
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Our business approach doesn't just focus on our products and |
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solutions; all things being equal, we believe most people prefer |
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doing business with a company that is also a good corporate |
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citizen. We refer to this as " |
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woven into our culture, daily operations, and interactions with the |
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communities we serve and in which we live. Whether it is being |
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there for our policyholders when they need us most, helping |
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families facing childhood cancer, providing opportunities for our |
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diverse workforce and distribution channels, being mindful of our |
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impact on the environment, or being good stewards of the |
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resources of shareholders, we believe that our approach is not |
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only the right thing to do but also makes good business sense. |
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Reflecting on 2022, our management team, employees and sales |
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distribution have continued to be resilient stewards of our |
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business, being there for our policyholders when they need us |
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most-just as we promise. From an overall standpoint, pandemic |
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conditions impacted operations in |
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half of 2022, but they are gradually improving. Meanwhile, |
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pandemic conditions in the |
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I'm proud of what we have accomplished by delivering solid |
"All things being equal, |
earnings and in terms of our social purpose. |
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we believe most people |
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prefer doing business with |
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a company that is also a |
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good corporate citizen." |
2 |
2022 BUSINESS & SUSTAINABILITY REPORT |
ABOUT AFLAC |
GOVERNANCE |
INVESTMENTS |
ENVIRONMENT |
WORKFORCE |
PHILANTHROPY |
APPENDIX |
In 2022 we reported net earnings per diluted share of
- Diversified and productive distribution
- Recognized, trusted and powerful brand
- Product innovation and customized, high-quality service
- Strong capital position marked by stable earnings and strong cash flows
- Industry-leadingmarket share and scale in
Japan and theU.S.
We are pleased to share one remarkable achievement in 2022- our 40th consecutive year of increasing our dividend. We are proud to be able to continue that long track record even amid the backdrop of a global pandemic.
We at Aflac remain committed to being there for our policyholders in their time of need. We will continue to build our business and take care of those who depend on us: our policyholders, shareholders, customers, employees, distribution channels and the communities in which we operate.
"We are continually working on leveraging our diverse and productive distribution; recognized, trusted and powerful brand; product innovation and customized, high-quality service; strong capital position … and industry- leading market share and scale in
Throughout this report, you will read about
many achievements in our environmental, social and governance initiatives.
I continue to believe that our compassionate approach and the trust we build with those who depend upon us establishes a stronger brand that consumers, employees and all of our stakeholders want to associate with. This approach ultimately helps us generate long-term value for shareholders. We hope that you will enjoy what you find on the pages of this report, as well as future updates.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
- Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management's control. Adjusted revenues are
U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses areU.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company's insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company's insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company's insurance business. The most comparableU.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively. Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted inJapan and foreign exchange rates are outside management's control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) intoU.S. dollars. The most comparableU.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively. Adjusted earnings of$5.67 per share excludes per share adjusted net investment gains of$0.70 , income tax benefit on items excluded from adjusted earnings of$0.56 , and foreign currency impact of$0.34 .
In this document, we may refer toAflac Incorporated's businesses collectively as "Aflac" or the "Company," the Company'sU.S. businesses as "AflacU.S. " and the Company's Japan businesses as "Aflac Japan ."
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2022 BUSINESS & SUSTAINABILITY REPORT |
Attachments
Disclaimer
Aflac Incorporated Releases 2022 Business and Sustainability Report
2023 Proxy Statement
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