Aflac (AFL) Morgan Stanley Japan Financials Conference presentation summary

Financial highlights and performance

• Reported $17.2B in revenues, $29.5B book value, and $3.6B net earnings as of 12/31/2025.

• Adjusted earnings reached $4.0B with an adjusted ROE of 14.0%.

• Adjusted leverage stood at 21.4%, with $8.4B in debt and $220M in interest expense.

• Net earnings declined 33% year-over-year, while adjusted earnings remained stable.

• Strong capital ratios: 253% regulatory ESR (Japan) and 450% combined RBC ratio (U.S.).

U.S. segment overview

• Maintains over 24% market share in worksite supplemental health insurance, more than 2.5x the nearest competitor.

• Net earned premiums diversified: 22% disability, 20% accident, 19% cancer, 12% hospital indemnity, 11% life.

• Pretax adjusted earnings for U.S. segment were $1.36B in 2025, with a 20.6% profit margin.

• Premium persistency remained strong at 79.2%.

• Significant growth opportunity: 116M U.S. workers do not have access to its products through employers.

Japan segment overview

• New annualized premium sales grew 16% in 2025, reaching ¥74.4B.

• Product mix: 67.2% cancer, 20.9% medical, 11.9% asset formation/nursing care.

• Launched new products: Miraito (cancer), Anshin Palette (medical), Tsumitasu (asset formation/nursing care).

• Broad distribution network includes 6,800 agencies, 20,000 post offices, and major alliances.

• Premium persistency high at 93.1%; pretax profit margin at 36.7%.