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 ...

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 ...

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 ...

分组1 - Aflac reported quarterly earnings of $1.57 per share, missing the Zacks Consensus Estimate of $1.71 per share, representing an earnings surprise of -8.10% [1] - The company posted revenues of $4.87 billion for the quarter, surpassing the Zacks Consensus Estimate by 8.70%, compared to year-ago revenues of $4.31 billion [2] - Aflac has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] 分组2 - The current consensus EPS estimate for the coming quarter is $1.79 on revenues of $4.44 billion, and for the current fiscal year, it is $7.36 on revenues of $17.55 billion [7] - The Zacks Industry Rank for Insurance - Accident and Health is currently in the bottom 30% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] - Aflac shares have added about 1.6% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3]

Financial Data and Key Metrics Changes - Adjusted earnings per diluted share increased 0.6% year-over-year to $1.57, excluding the effect of foreign currency [1] - Adjusted book value per share increased 0.5%, with an adjusted ROE of 11.7% and 14.5% excluding foreign currency remeasurement [1] - Overall results for the quarter were viewed as solid [1] Business Line Data and Key Metrics Changes - In Japan, net earned premiums in yen terms declined 1.9%, while underlying earned premiums decreased 1.2% [2] - Japan's total benefit ratio improved to 65%, down 150 basis points year-over-year, with reserve remeasurement gains favorably impacting the ratio [2] - In the U.S., net earned premiums increased by 4%, but premium persistency declined slightly by 10 basis points to 79.2% [4] - The total benefit ratio in the U.S. was 48.6%, up 230 basis points year-over-year, driven by higher claims activity [4] Market Data and Key Metrics Changes - Japan's expense ratio was 22%, up 120 basis points year-over-year, primarily due to sales promotion expenses [3] - U.S. expense ratio was 40.4%, up 10 basis points year-over-year, influenced by timing of spend from previous quarters [4] - Adjusted net investment income in Japan was down 3.9%, while in the U.S. it decreased by 2.8% [3][5] Company Strategy and Development Direction - The company plans to continue focusing on growth initiatives in group life and disability, network dental and vision, and direct-to-consumer segments [4] - For 2026, the company expects underlying earned premiums in Japan to decline by 1%-2% and anticipates a benefit ratio in the 60%-63% range [11][12] - In the U.S., net earned premium growth is expected to be in the lower end of the 3%-6% range, with a benefit ratio forecasted between 48%-52% [12] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the performance of the investment portfolio, noting no charge-offs for the commercial real estate portfolio [6] - The company has improved its liquidity and capital flexibility, lowering the minimum liquidity balance at the holding company [9] - Capital ratios remain strong, with an estimated combined RBC of 575% and an SMR above 970% [10] Other Important Information - The company repurchased $800 million of its own stock and paid dividends of $303 million in Q4, indicating strong capital management [11] - Adjusted leverage was 21.4%, within the target range of 20%-25%, influenced by currency exchange rates [9] Q&A Session Summary Question: What is the outlook for Aflac Japan's earned premiums? - The company expects underlying earned premiums in Japan to decline by 1%-2% in 2026 [11] Question: How does the company view its expense ratios moving forward? - The expense ratio in Japan is expected to be in the 20%-23% range, while the U.S. expense ratio is anticipated to be in the 36%-39% range [12]