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Here are 1-3 brief analogies to describe Aflac (AFL):

1. Aflac is like the 'SquareTrade for your personal health and finances,' offering specialized supplemental insurance that pays cash directly to you for accidents or illnesses, complementing your main health coverage.
2. Aflac is like the 'Geico of supplemental personal insurance,' providing direct cash benefits to policyholders for specific health events like accidents or critical illnesses, designed to help fill gaps in existing health coverage.

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• Accident Insurance: Provides cash benefits directly to policyholders for injuries resulting from covered accidents.
• Cancer Insurance: Offers financial assistance to policyholders for out-of-pocket costs related to a cancer diagnosis and treatment.
• Critical Illness Insurance: Pays a lump-sum benefit upon the diagnosis of a covered critical illness, such as a heart attack, stroke, or major organ transplant.
• Hospital Indemnity Insurance: Provides cash benefits for hospital stays due to illness or injury, helping to cover deductibles, co-pays, and other expenses.
• Short-Term Disability Insurance: Replaces a portion of lost income when a policyholder is unable to work due to a covered illness or injury.
• Life Insurance: Provides a financial benefit to beneficiaries upon the policyholder's death, offering financial security.
• Dental Insurance: Helps cover the costs of routine and major dental care procedures.
• Vision Insurance: Assists with expenses related to eye exams, prescription glasses, and contact lenses.

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Aflac (symbol: AFL) primarily sells its insurance products to **individuals**.

The company serves the following categories of customers:

• Employees in the Workplace Market: The vast majority of Aflac's customers are individuals who purchase supplemental insurance policies through their employers. Aflac partners with businesses of all sizes to offer its products as voluntary benefits to their employees, providing an added layer of financial protection beyond traditional health insurance.

• Small Business Owners and their Employees: A significant segment within the workplace market includes small business owners and their employees. Aflac often targets small to medium-sized businesses, providing them with solutions to offer competitive benefits to their workforce without direct cost to the employer, while employees gain valuable supplemental coverage.

• Individuals Seeking Direct Coverage: Although a smaller portion of its customer base, Aflac also serves individuals who purchase policies directly from the company or its agents, outside of an employer-sponsored program. This category might include self-employed individuals or those whose employers do not offer Aflac as a benefit.

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• Salesforce (CRM)

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Daniel P. Amos, Chairman and Chief Executive Officer

Daniel P. Amos has served as Chief Executive Officer of Aflac since 1990 and as Chairman since 2001. He joined Aflac in 1973 as an insurance salesman, following in the footsteps of his father, Paul Amos, an Aflac co-founder. Prior to becoming CEO, he held roles as president (1983) and chief operating officer (1987). During his leadership, his sales territory in Alabama/West Florida was the top-producing area in 1981 and 1982. Under his tenure as CEO, Aflac's revenues have grown significantly, from $2.7 billion in 1990 to $22.1 billion as of December 31, 2021. Mr. Amos also served as a director of Synovus Financial Corp. from 2001 to 2011 and Southern Company from 2000 to 2006.

Max K. Brodén, Senior Executive Vice President; Chief Financial Officer, Aflac Incorporated

Max K. Brodén has been the Chief Financial Officer and Executive Vice President of Aflac Incorporated since 2020. He joined Aflac in 2017 as senior vice president and treasurer, and prior to that, he served as a senior portfolio manager at Norges Bank from 2007 to 2017, where he managed an equity portfolio of global financial and insurance stocks.

Virgil R. Miller, President of Aflac Incorporated and Aflac U.S.

Virgil R. Miller assumed the role of President, Aflac U.S. effective January 1, 2023, succeeding Teresa L. White. He joined Aflac in 2004 and has accumulated over 30 years of industry experience. Throughout his tenure at Aflac, he has held various positions of increasing responsibility, including vice president of Client Services, Chief Administration Officer, Chief Operating Officer, and executive vice president and president of Aflac Group and Individual Benefits. Mr. Miller is a U.S. Marine veteran of Operation Desert Storm.

Audrey Boone Tillman, Senior Executive Vice President; General Counsel, Aflac Incorporated

Audrey Boone Tillman serves as Senior Executive Vice President and General Counsel for Aflac Incorporated. She joined Aflac in 1996 and has held several leadership roles within the legal department before becoming General Counsel.

Charles D. Lake II, Chairman and Representative Director, Aflac Life Insurance Japan; President, Aflac International

Charles D. Lake II holds the titles of Chairman and Representative Director, Aflac Life Insurance Japan, and President of Aflac International. Prior to these roles, he served as Vice Chairman and President of Aflac Japan. His career also includes experience in government, having served as a Director of Japan Affairs and Special Counsel at the office of the U.S. Trade Representative in the Executive Office of the President.

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1. Dependency on the Japanese Market and Currency Risk: A significant portion of Aflac's revenue and assets are derived from its operations in Japan. This concentration exposes the company to economic downturns, adverse regulatory changes specific to Japan, and fluctuations in the exchange rate between the Japanese yen and the US dollar, which can impact its financial performance.
2. Intense Competition: Aflac operates in a highly competitive insurance industry, facing numerous established traditional insurers and emerging insurtech startups. This competitive landscape requires continuous innovation and differentiation to maintain market share and profitability.
3. Regulatory Risks: The insurance industry is subject to extensive regulation in both the United States and Japan. Changes in laws, regulations, or increased regulatory scrutiny could lead to higher compliance costs, restrict business operations, and negatively impact Aflac's financial results.

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U.S. Market

• Voluntary Benefits Market: The U.S. voluntary benefits sector saw total sales reach a record-breaking $9.53 billion in 2024. In-force premiums also reached an all-time high of $56.6 billion in 2024. In 2023, the total sales premium for voluntary benefits was $9.34 billion.
• Supplemental Health Insurance Market: Aflac holds a substantial 27% market share in the U.S. supplemental health insurance market. The company identifies a significant growth opportunity, as 112 million out of 181 million workers are employed at businesses that do not currently offer Aflac's products. The global supplemental health insurance market, which includes the U.S., was valued at approximately $4.39 billion in 2025 and is projected to reach $8.51 billion by 2034, growing at a compound annual growth rate (CAGR) of 7.63% from 2025 to 2034. Another estimate valued the global market at approximately $4.5 billion in 2023, expecting it to reach $8.2 billion by the end of 2033 with a CAGR of 6.1% from 2025 to 2033.
• Group Health Insurance Market: The U.S. group health insurance market was estimated at $1.41 trillion in 2024 and is projected to grow at a CAGR of 2.2% from 2025 to 2030. Globally, the group health insurance market was valued at $744.04 billion in 2021 and is projected to reach $1,800.08 billion by 2031, growing at a CAGR of 9.4% from 2022 to 2031. It is estimated to be valued at $3.11 trillion in 2025 and is expected to reach $5.87 trillion by 2032, exhibiting a CAGR of 9.5%.

Japan Market

• Cancer and Medical Insurance: Aflac Japan is the largest insurer in Japan for cancer and medical policies, demonstrating a strong market presence. Aflac Japan reported over 22 million individual policies in force, with more than 14 million specifically being cancer policies.

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Aflac (AFL) is expected to drive future revenue growth over the next 2-3 years through several key initiatives across its U.S. and Japan segments.

Here are the expected drivers:

1. New Product Launches and Expansion in Japan: Aflac Japan is seeing significant growth from recently launched products. The new cancer insurance product, Miraito, has shown strong early sales across all distribution channels. Additionally, the "Tsumitasu" product, introduced in June 2024, focuses on retirement asset formation and post-retirement nursing care, contributing to increased annualized premiums from new policies. These innovations are crucial for attracting both aging and younger consumers in a critical market for Aflac.
2. U.S. Product Portfolio Diversification and Group Business Growth: In the U.S. market, Aflac is expanding its product offerings beyond its traditional supplemental health insurance. There's a particular emphasis on growing its dental and vision insurance products, alongside robust performance in group life and disability offerings. The company is also expanding its reach through Aflac Group to serve larger employers with 100 or more employees.
3. Strategic Investments and Partnerships: Aflac is actively pursuing strategic investments and partnerships to bolster growth and diversify its operations. An example includes Aflac Global Investments' agreement to acquire a 40% stake in Tree Line Capital Partners in May 2024, supported by a multiyear commitment to allocate annual investable cashflow to Tree Line. Furthermore, partnerships with technology companies like Nayya (for integrated claims and benefits guidance) and Empathy (for digital legacy planning) aim to enhance customer value and operational efficiency.
4. Maintaining Strong Premium Persistency and Driving New Sales: Both the U.S. and Japan segments are focused on maintaining strong premium persistency and increasing new sales to drive net earned premium growth. Despite challenges, Aflac U.S. generated a 2.8% year-over-year increase in new sales in Q3 2025 while maintaining a premium persistency of 79%. Aflac Japan also saw an 11.8% year-over-year sales increase in Q3 2025.
5. Digital Transformation and Operational Efficiency: Aflac's innovation strategy includes leveraging technology to enhance customer experience and operational efficiency. Initiatives such as expanding digital underwriting, customer-facing generative AI, and digital human avatars are expected to improve customer engagement and potentially lead to better margins in the long term.

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Share Repurchases

• Aflac repurchased $2.8 billion of its common shares in 2024, accounting for over 30 million shares.
• In 2023, the company deployed $2.801 billion to repurchase approximately 39 million shares.
• Aflac repurchased $2.401 billion of its common stock in 2022.
• As of August 12, 2025, Aflac's Board of Directors authorized the purchase of 100 million additional shares, bringing the total available for repurchase to approximately 130.9 million shares, including 30.9 million shares remaining from a November 2022 authorization.

Share Issuance

• Aflac issued 1,042,000 shares in 2024.
• The company issued 1,164,000 shares in 2023.
• Aflac issued 1,341,000 shares in 2022.
• In 2021, 1,721,000 shares were issued.

Outbound Investments

• In May 2024, Aflac Global Investments agreed to acquire a 40% stake in Tree Line Capital Partners, a San Francisco-based direct lender to the lower middle market. Aflac also committed to allocating a portion of its annual investable cashflow to Tree Line over multiple years.
• In November 2020, Aflac, through its insurance subsidiaries, acquired Zurich North America's U.S. Corporate Life and Pensions business, which included group life, disability, and absence management products, and reinsured Zurich North America's U.S. in-force group life and disability policies with annualized earned premiums exceeding $100 million.
• In 2020, Aflac also purchased newly issued common stock of Trupanion, Inc., a provider of medical insurance for pets in the United States.