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March 23, 2025 Newswires
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March Debt Investor Update

U.S. Markets via PUBT

Debt Investor Update

March 23, 2025

Aflac Incorporated Highlights

As of 12/31/2024

$18.9bn

$7.5bn

Revenues

Debt1

$197mm

$26.1bn

Interest Expense2

Book Value

$5.4bn

19.7%

Net Earnings

Adjusted Leverage3

$4.1bn

14.4%

Adjusted Earnings3

Adjusted ROE3

a

A-

A3

AA-

A+

AM Best

S&P

Moody's

JCR4

R&I

Long-term Senior Debt Ratings

Adjusted Pretax

Earnings5

29%

71%

Fortune

World's

Most Admired

Companies

2025

Aflac Japan

Aflac U.S.

1Debt refers to the consolidated notes payable and lease obligations of $7,498 million.

2Consolidated interest expense for debt includes $74 million interest expense at "Corporate and other".

3Non-GAAP measure; please see Appendix for definitions and reconciliations "Adjusted Leverage" is "Adjusted debt to adjusted capitalization ex-AOCI".

3

4On March 19, 2025, JCR upgraded the ratings of Aflac Incorporated and its rated operating companies; the senior debt rating of Aflac Incorporated was upgraded to AA- from A+

5Corporate and Other reported pretax adjusted earnings of $32 million in 2024.

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

2020

2021

2022

2023

2024

Net Earnings

Adjusted Earnings

Adjusted Leverage1

23.0%

22.7%

32,524

33,398

20.6%

34,011

34,658

36,574

19.7%

19.7%

7,467

7,568

7,105

6,839

7,216

2020

2021

2022

2023

2024

Adjusted Debt*

Adjusted capitalization ex- AOCI*

Adjusted Leverage*

Dividends to Holding Company

Interest Expense

3,841

242

238

226

3,516

195

197

3,006

2,791

2,068

2020

2021

2022

2023

2024

2020

2021

2022

2023

2024

1Adjusted earnings, Adjusted debt, Adjusted capitalization ex-AOCI and Adjusted Leverage (Adjusted debt/ Adjusted

capitalization ex-AOCI) are non-GAAP measures: please see "Glossary of Non U.S GAAP Measures" in the Appendix

4

Aflac Japan

Aflac Japan: The Leader in Cancer and Medical Insurance in Japan

Over 50-years

of success in

Japan

Demographic

trends

contributing to increased awareness

Aflac Japan

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

Cancer Insurance

Medical Insurance

Asset Formation / Nursing Care

  • 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

Alliance Partners

Financial

(Associates / Agencies)

(Cancer Insurance)

Institutions

Aflac-preferred /

Large Non-

Japan Post

Dai-ichi Life

Daido Life

Banks

Exclusive

exclusive

Group

•

Aflac Japan's main

• 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

•

Consists of

targeting customers,

through Japan Post Co.

sales representatives

sales representatives

approximately 6,900

who want to compare

and Japan Post

nationwide providing

nationwide offer Aflac's

agencies, including

products from multiple

Insurance (JPI)

face-to-face

cancer insurance to

~3,300 exclusive

insurance companies,

•

Expanded sales

consultations and

small and medium-

agencies

especially young and

distribution includes

offering Aflac cancer

sized business

•

Strengthening support

middle-aged

◦ ~20,000 post offices

insurance

owners, executives

for the recruitment and

customers

◦ 76 JPI branches for

and employees

training of agents in

corporate sales

exclusive agencies

◦ 623 JPI service

department for

individual sales

1Distribution figures reported on this slide are as of March 31, 2024

  • 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

Aflac Japan 2024 Financial Update

Aflac Japan Net Earned Premiums

Pretax Adjusted Earnings and Pretax Profit Margin1

¥600,000

40.0%

by Product

¥456,859

¥527,675

¥500,000

YTD as of 12/31/2024

¥411,808

¥430,823

36.0%

35.0%

¥400,000

¥347,881

27.7%

Third

26.1%

30.0%

¥300,000

30.5%

Sector

25.0%

¥200,000

21.2%

¥100,000

20.0%

¥0

2020

2021

2022

2023

2024

15.0%

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 U.S. Segment

Attention: This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

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Disclaimer

Aflac Incorporated published this content on March 23, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 23, 2025 at 13:17:12.730.

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