Aflac Conference: Japan Sales Momentum, Broker-Led U.S. Growth and $4.8B in Dividends, Buybacks

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].