March Debt Investor Update
Debt Investor Update
Aflac Incorporated Highlights
As of
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Revenues |
Debt1 |
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$197mm |
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Interest Expense2 |
Book Value |
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19.7% |
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Net Earnings |
Adjusted Leverage3 |
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14.4% |
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Adjusted Earnings3 |
Adjusted ROE3 |
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a |
A- |
A3 |
AA- |
A+ |
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AM Best |
S&P |
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JCR4 |
R&I |
|
Long-term Senior Debt Ratings |
Adjusted Pretax
Earnings5
29%
|
71% |
Fortune |
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World's |
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Most Admired |
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Companies |
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2025 |
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Aflac |
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1Debt refers to the consolidated notes payable and lease obligations of |
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2Consolidated interest expense for debt includes |
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3Non-GAAP measure; please see Appendix for definitions and reconciliations "Adjusted Leverage" is "Adjusted debt to adjusted capitalization ex-AOCI". |
3 |
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4On |
5Corporate and Other reported pretax adjusted earnings of
Aflac Incorporated Financial Performance
In $ millions
Consolidated Earnings
|
4,778 |
3,552 |
4,231 |
3,925 |
4,418 |
3,614 |
4,659 |
3,733 |
5,443 |
4,072 |
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|
2020 |
2021 |
2022 |
2023 |
2024 |
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Net Earnings |
Adjusted Earnings |
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Adjusted Leverage1
|
23.0% |
22.7% |
|||||||||||
|
32,524 |
33,398 |
20.6% |
34,011 |
34,658 |
36,574 |
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19.7% |
19.7% |
|||||||||||
|
7,467 |
7,568 |
7,105 |
6,839 |
7,216 |
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2020 |
2021 |
2022 |
2023 |
2024 |
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Adjusted Debt* |
Adjusted capitalization ex- AOCI* |
Adjusted Leverage* |
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Dividends to Holding Company |
Interest Expense |
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3,841 |
242 |
238 |
226 |
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3,516 |
195 |
197 |
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3,006 |
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2,791 |
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2,068
|
2020 |
2021 |
2022 |
2023 |
2024 |
2020 |
2021 |
2022 |
2023 |
2024 |
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1Adjusted earnings, Adjusted debt, Adjusted capitalization ex-AOCI and Adjusted Leverage (Adjusted debt/ Adjusted |
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capitalization ex-AOCI) are non-GAAP measures: please see "Glossary of Non |
4 |
Over 50-years
of success in
Japan
Demographic
trends
contributing to increased awareness
takes a
strategic
approach to
market
development
- Since its establishment in
Japan in 1974, Aflac has developed an attractive productline-upand broad distribution network to become Japan's leading provider of cancer and medical insurance with over 22 million individual policiesin-force. - Japan's shrinking and aging populationis placing increased financial strain on the country's social security and national health insurance systems and helping create awareness of the need for Aflac's core third sector cancer and medical policies
- In this rapidly changing and increasingly competitive business environment, Aflac has remaineddisciplined and focused on its core third sector business
Aflac Japan's three-year Management Strategy provides direction for achieving the Company's mid- to long-term objectives- The 2025 rollout of a Marketing and Sales Transformation will further tailor our marketing efforts to our core product areas - cancer, medical, and asset formation and nursing care - to meet customer needs and acquire new and younger policyholders
6
Product Innovation - Integrating Services for Different Stages of Life
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Asset Formation / |
- Maintaining #1 positions in the cancer insurance market
- Launching a new product in stages from March to April, which includes insurance coverage that offers enhanced protection before, during and after cancer treatment providing comprehensive protection flexibly to meet our customer's needs
- Provides customers with value that no other company can offer, through a product that integrates our unique "Yori- sou Cancer Consultation Support" services along with cancer insurance
- Integrated the innovative feature of monthly coverage in accordance with the national system, along with strengthened services that offer comprehensive support for customers' entire lives
- Continue to enhance coverage with new, more attractive medical products and services
- To meet the young and middle-aged customers' growing need to build their assets, launched as asset formation product, Tsumitasu that also provides future nursing care coverage in
June 2024 - Promote comprehensive protection proposals by combining the asset formation product with our main third- sector products
7
Broad Distribution1 to Reach More Customers
|
Traditional Sales Channel |
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Financial |
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(Associates / Agencies) |
( |
Institutions |
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Aflac-preferred / |
Large Non- |
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|
Banks |
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Exclusive |
exclusive |
Group |
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• |
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• Nationwide non- |
• |
Initiated in 2013, selling • |
Initiated in 2000, with |
• Initiated in 2013, |
|
sales channel |
exclusive agencies |
Aflac's cancer insurance |
approximately 37,000 |
approximately 3,600 |
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|
• |
Consists of |
targeting customers, |
through |
sales representatives |
sales representatives |
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approximately 6,900 |
who want to compare |
and |
nationwide providing |
nationwide offer Aflac's |
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|
agencies, including |
products from multiple |
Insurance (JPI) |
face-to-face |
cancer insurance to |
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~3,300 exclusive |
insurance companies, |
• |
Expanded sales |
consultations and |
small and medium- |
|
|
agencies |
especially young and |
distribution includes |
offering Aflac cancer |
sized business |
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• |
Strengthening support |
middle-aged |
◦ ~20,000 post offices |
insurance |
owners, executives |
|
|
for the recruitment and |
customers |
◦ 76 JPI branches for |
and employees |
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training of agents in |
corporate sales |
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exclusive agencies |
◦ 623 JPI service |
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department for |
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individual sales |
1Distribution figures reported on this slide are as of
- Partnered with 360 financial institutions, among the most in Japan's life insurance industry
- Offering cancer insurance, medical insurance, etc., primarily through regional banks and shinkin banks
8
|
|
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Aflac Japan Net Earned Premiums |
Pretax Adjusted Earnings and Pretax Profit Margin1 |
||||||
|
¥600,000 |
40.0% |
||||||
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by Product |
¥456,859 |
¥527,675 |
|||||
|
¥500,000 |
|||||||
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YTD as of |
¥411,808 |
¥430,823 |
36.0% |
35.0% |
|||
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¥400,000 |
¥347,881 |
27.7% |
|||||
|
Third |
26.1% |
30.0% |
|||||
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¥300,000 |
30.5% |
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Sector |
25.0% |
||||||
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¥200,000 |
21.2% |
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¥100,000 |
20.0% |
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¥0 |
2020 |
2021 |
2022 |
2023 |
2024 |
15.0% |
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Medical and Other health 32.7%
|
Cancer |
|
|
50.0% |
100% |
Life
Insurance80% 17.3%
60%
40%
20%
0%
|
Pretax Adjusted Earnings |
Pretax Profit Margin (Right Axis) |
|
Premium Persistency (12-Month Rolling)
|
95.1% |
94.3% |
94.1% |
93.4% |
93.4% |
|
2020 |
2021 |
2022 |
2023 |
2024 |
- In millions. Before management fee. Includes FX conversion associated with Japan's USD portfolio
9
Aflac
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