Financial Data and Key Metrics Changes - Aflac reported net earnings per diluted share of $1.11 and adjusted earnings per diluted share of $1.78 for Q2 2025, with adjusted earnings per diluted share decreasing by 2.7% year over year [4][14] - Adjusted book value per share excluding foreign currency remeasurement increased by 5.2% [14] - The adjusted return on equity (ROE) was 13.7% to 16.4%, excluding foreign currency remeasurement [14] Business Line Data and Key Metrics Changes - Aflac Japan experienced a 23.2% year-over-year sales increase, with a notable 53% increase in cancer insurance sales driven by the new product MiRyto [5][6] - Aflac US generated $340 million in new sales during Q2, reflecting a 2.7% year-over-year increase, with strong premium persistency of 79.2% and a 3.4% increase in net earned premium [7][8] - Aflac Japan's net earned premiums declined by 4.8%, while underlying earned premiums, excluding certain impacts, declined by 1.1% [15] Market Data and Key Metrics Changes - Aflac Japan's total benefit ratio was 66.5%, down 40 basis points year over year, while the third sector benefits ratio was 57.4%, also down approximately 40 basis points [16] - In the US, the total benefit ratio was 47.3%, which was 60 basis points higher than Q2 2024, driven by business mix [20] Company Strategy and Development Direction - The company is focusing on maintaining strong premium persistency and expanding its distribution channels in Japan, including agencies and banks, to meet changing customer needs [6][7] - Aflac aims to leverage its innovative products, such as MiRyto, to attract new and younger customers while maintaining a strong reputation for financial protection [5][13] - The company is committed to prudent liquidity and capital management, with a focus on tactical capital deployment to drive strong risk-adjusted returns [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for Aflac's products, emphasizing the importance of being a partner in health for policyholders [9][13] - The company anticipates a stronger second half of 2025, driven by fourth-quarter bookings and improved performance in various business segments [62][65] - Management acknowledged the competitive landscape in Japan, particularly in medical insurance, and plans to launch new products to enhance market position [82][86] Other Important Information - Aflac repurchased $829 million of its own stock and paid dividends of $312 million in Q2 2025, returning a total of $1.1 billion to shareholders [10][25] - The company celebrated several milestones, including the 30th anniversary of the Aflac Cancer and Blood Disorders Center and the 70th anniversary of its founding [11][12] Q&A Session Summary Question: Impact of new cancer product on sales - Management indicated that the new cancer product, MiRyto, has gained traction and is expected to continue driving strong sales performance [33][36] Question: Japan investment income and sustainability - Management noted that variable net investment income from alternatives contributed significantly to the improvement in Japan's investment income, with optimism for a solid second half [39][41] Question: Approach to capital deployment and M&A - Management emphasized a balanced approach to capital deployment, focusing on organic growth and shareholder returns, while remaining open to M&A opportunities [59][60] Question: U.S. sales performance and expectations - Management acknowledged the sluggish sales growth in the U.S. but expressed optimism for a stronger second half driven by improved recruitment and performance in specific segments [62][65] Question: Frequency of product refresh cycles - Management confirmed that the refresh cycle for cancer insurance is three years, while medical insurance is two years, contingent on regulatory approval [97]