Aflac Incorporated (NYSE:AFL) is included among the 14 Best Affordable Dividend Stocks to Buy According to Analysts. Wells Fargo Raises Aflac (AFL) Target, Revises Earnings Outlook and Valuation Approach On February 25, Wells Fargo analyst Elyse Greenspan raised the firm’s price recommendation on Aflac Incorporated (NYSE:AFL) to $118 from $109. Itreiterated an Equal Weight rating on the shares. The firm said that after reviewing fourth-quarter guidance across the sector, it is lowering EPS estimates for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-07434 Aflac Incorporated (Exact name of registrant as specified in its charter) | Georgia | | 58-1167100 | | | --- | --- | --- | --- ...

Core Viewpoint - Aflac is addressing Japan's demographic challenges through innovation in products and market strategies, focusing on growth while maintaining expense discipline and profitability [1][3]. Financial Performance - Aflac returned nearly $4.8 billion to shareholders in 2025, including $3.5 billion in share repurchases, marking a record year and extending its dividend increase streak to 43 consecutive years [2][4]. - The company is targeting an internal capital marker near 10%, currently at approximately 6% [4][17]. Market Dynamics - In the U.S., brokers account for about 80% of the market and generated over 60% of Aflac's U.S. sales in 2025, contributing to a 14% growth in overall group products [5][13]. - Aflac is experiencing sales momentum in Japan, particularly with products aimed at younger customers, and is expanding its distribution through banks and agencies [6][11]. Product Innovation - Key products driving growth include Tsumitasu, Miraito, and Anshin Palette, with Tsumitasu designed to adjust rates as interest rates change, providing a competitive edge [9][10][12]. - The company is leveraging AI to enhance agent efficiency and streamline enrollment processes, particularly in Japan [14]. Strategic Focus - Aflac remains committed to organic growth and does not pursue M&A unless it aligns with operational and strategic goals, emphasizing a focus on supplemental health products [18]. - The company sees significant underpenetrated opportunities in the U.S. market, particularly in dental and vision insurance, and plans to increase advertising to communicate product value [19].

Core Insights - Aflac is experiencing positive growth in both the Japanese and U.S. insurance markets, with a focus on innovative products to meet changing consumer needs [2][3] Group 1: Japanese Market - Aflac has successfully introduced new products such as Tsumitasu and Miraito, focusing on cancer insurance to align with the aging population's needs [2] - The company is committed to reinventing its offerings in Japan to drive sales growth [2] Group 2: U.S. Market - Aflac reports a 3% overall increase in its U.S. market, with group products showing tremendous growth that outpaces the market [3] - The company is placing greater emphasis on its traditional business to enhance performance in the U.S. [3]

Aflac 2026 Conference Call Summary Company Overview - **Company**: Aflac Inc. (NYSE: AFL) - **Date**: February 11, 2026 - **Key Speakers**: Virgil Miller (President), David Young (SVP of Capital Markets) Key Points Industry and Market Position - Aflac operates in two of the largest insurance markets globally: Japan and the U.S. [2][3] - The company is a pioneer in the Third Sector market, particularly in cancer insurance, and continues to dominate this segment in Japan [5][6] Japan Market Insights - **Sales Growth**: Aflac has focused on innovative products to align sales growth with the aging population in Japan. The introduction of the Tsumitasu product and the cancer insurance product Miraito has led to solid growth [2][3][5] - **Target Audience**: Aflac is targeting younger consumers with products designed to be flexible and appealing, allowing existing customers to purchase additional benefits [6][7] - **Distribution Strategy**: Aflac has strengthened its distribution through bank alliances and agency forces, increasing the number of banks offering Aflac products [9][10][21] - **Product Flexibility**: The Tsumitasu product allows for rate adjustments as interest rates change, providing a competitive edge in the market [9][16] U.S. Market Insights - **Competitive Environment**: The U.S. market is highly competitive, with an increasing number of companies offering supplemental and voluntary benefits. Aflac has seen a 16% increase in the conversion rate of new agents [25][26][27] - **Sales Performance**: Aflac reported $1.6 billion in sales for the previous year, marking one of the highest sales years on record. Group products grew by 14%, significantly outpacing the market [40][28] - **Product Suite**: Aflac remains a leader in cancer insurance and supplemental health products. The company is focused on streamlining the enrollment process to enhance agent efficiency [30][31] Financial Performance - **Capital Management**: Aflac returned nearly $4.8 billion to shareholders through dividends and share repurchases, maintaining a record of 43 consecutive years of dividend increases [4][42] - **Excess Capital**: The company has significant excess capital and is focused on organic growth, with a strategy to evaluate potential M&A opportunities if gaps are identified [42][44][54] Future Outlook - **Growth Opportunities**: Aflac plans to focus on expanding its dental and vision products and enhancing its life absence and disability offerings. The company aims to leverage its strong brand reputation to drive growth in the U.S. market [61][62] - **Technological Advancements**: Aflac is utilizing AI to improve efficiency in Japan, with plans to enhance the enrollment process and customer interactions in the U.S. [35][36] Additional Insights - **Medical Inflation**: Rising medical costs and high deductibles are driving demand for supplemental insurance, which Aflac is leveraging in its sales strategy [39][41] - **Brand Recognition**: Aflac's strong brand presence in Japan and the U.S. is a key asset, with efforts to maintain consumer trust and awareness through marketing initiatives [58][61] This summary encapsulates the key insights and strategic directions discussed during the Aflac 2026 conference call, highlighting the company's performance, market strategies, and future growth opportunities.

Core Insights - Aflac Incorporated is a leading provider of supplemental health and life insurance, primarily operating in the U.S. and Japan, with a market cap of $59.5 billion [1] - The company's stock has underperformed compared to the broader market, gaining 9.5% over the past 52 weeks, while the S&P 500 Index increased by 12.2% [1] - Year-to-date, Aflac's stock is up 6.5%, contrasting with a slight decline in the S&P 500 [1] - Aflac has outperformed the SPDR S&P Insurance ETF, which saw a 1.8% increase over the past 52 weeks [2] Financial Performance - In Q4 2025, Aflac reported total revenue of $4.9 billion, a decline of 9.3% year-over-year [4] - Adjusted earnings decreased by 5.4% to $818 million, while adjusted EPS rose slightly to $1.57 [4] - Net investment gains fell by 46.3% year-over-year to $537 million, down from $1 billion [4] - Shareholders' equity increased to $29.5 billion, or $56.85 per share, up from $26.1 billion a year earlier, with a strong annualized return on equity of 19% [4] Analyst Expectations - For the current fiscal year ending in December, analysts project Aflac's EPS to decline by 1.7% year-over-year to $7.36 [5] - The consensus rating among 16 analysts is a "Hold," with two "Strong Buy," one "Moderate Buy," nine "Hold," and four "Strong Sell" ratings [5] Market Outlook - Barclays has lowered its price target for Aflac to $101 from $104, maintaining an "Equal-Weight" rating [6] - The firm expresses cautious optimism regarding life insurers, citing strong capital positions and solid cash flow as positives, while noting challenges such as spread compression and rising technology spending [6]

Key Takeaways AFL reported Q4 adjusted EPS of $1.57, up 0.6% year over year, but missing consensus estimates.AFL revenues fell 9.9% to $4.9B as net investment income dropped and operating expenses rose.AFL saw Japan premium sales jump 15.7%, while U.S. earnings declined on higher benefits and expenses.Aflac Incorporated (AFL) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.57, which missed the Zacks Consensus Estimate by 8.2%. The bottom line improved 0.6% year over year. Adjusted reven ...

Aflac (NYSE:AFL) Q4 2025 Earnings call February 05, 2026 08:00 AM ET Company ParticipantsAlex Scott - CFABradley Dyslin - Global Chief Investment Officer and President, Aflac Global InvestmentsDaniel Amos - Chairman and CEODavid Young - Head of Investor RelationsJack Matten - CFAKoichiro Yoshizumi - Head of Marketing and Sales DivisionMax Brodén - CFOVirgil Miller - PresidentNone - TranslatorConference Call ParticipantsJoel Hurwitz - AnalystJohn Barnidge - Managing Director and Senior Research AnalystSuneet ...

Financial Data and Key Metrics Changes - Aflac reported Q4 2025 net earnings per diluted share of $2.64 and adjusted earnings per diluted share of $1.57, with full-year net earnings per diluted share at $6.82 and adjusted earnings at $7.49 [5] - Adjusted earnings per diluted share increased 0.6% year-over-year for Q4 2025, while adjusted book value per share rose 0.5% [14] - The adjusted return on equity (ROE) was 11.7%, and 14.5% excluding foreign currency remeasurement [14] Business Line Data and Key Metrics Changes - Aflac Japan's sales increased by 15.7% in Q4 and 16% for the full year 2025, driven by the launch of the Moraito cancer insurance product [6][7] - Aflac U.S. generated nearly $1.6 billion in new sales for 2025, with over one-third coming from Q4 [8] - Premium persistency in Aflac Japan remained strong at 93.1%, while Aflac U.S. reported a persistency of 79.2% [9][10] Market Data and Key Metrics Changes - Aflac Japan's net earned premiums in yen terms declined by 1.9% for Q4 2025, while underlying earned premiums decreased by 1.2% [14][15] - In the U.S., net earned premiums increased by 4%, but the total benefit ratio rose to 48.6%, driven by higher claims activity [17] Company Strategy and Development Direction - Aflac continues to emphasize third sector protection and has introduced innovative products to meet changing customer needs [7][8] - The company aims to maintain strong premium persistency while offsetting the impact of reinsurance and policies reaching paid-up status [7] - Aflac plans to enhance its capital deployment strategy, including a 5.2% increase in dividends for Q1 2026 and a record $3.5 billion in share repurchases for 2025 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and ability to navigate increasing out-of-pocket medical expenses faced by consumers [10] - The outlook for 2026 includes expectations for underlying earned premiums in Japan to decline by 1%-2% and net earned premium growth in the U.S. to be in the lower end of the 3%-6% range [25] Other Important Information - Aflac's capital position remains strong, with an SMR above 970% and an estimated regulatory ESR of 253% [22][23] - The company has enhanced liquidity and capital flexibility by creating off-balance sheet pre-capitalized trusts [21] Q&A Session Summary Question: Concerns about surrender levels in Japan due to rising yields - Management acknowledged the potential for increased surrenders but noted that they have not yet experienced significant changes [30] Question: Impact of ESR on M&A or capital deployment - Management confirmed that while capital is available for M&A, finding suitable operational and strategic targets remains challenging [33] Question: Lower benefit ratio guidance in Japan - Management explained that the lower benefit ratio is influenced by updated actuarial assumptions and new product introductions [36][38] Question: Group versus non-group sales performance - Management reported strong growth in group sales, particularly in network dental and vision products, while traditional voluntary benefits have been flat [72] Question: Future premium growth in Japan - Management indicated that strong persistency is limiting premium growth, with expectations for a positive turn in the future [78]

Aflac (NYSE:AFL) Q4 2025 Earnings call February 05, 2026 08:00 AM ET Speaker8Good morning, everyone, and welcome to the Aflac Incorporated Fourth Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star and then one on your touchtone phone. To withdraw your qu ...