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EP Wealth Advisors LLC purchased a new stake in Aflac Incorporated (NYSE:AFL – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 23,428 shares of the financial services provider’s stock, valued at approximately $2,747,000.

A number of other institutional investors also recently modified their holdings of the business. Whipplewood Advisors LLC bought a new stake in shares of Aflac during the 1st quarter worth $25,000. Groupe la Francaise bought a new position in Aflac in the first quarter valued at about $25,000. Quarry LP bought a new position in Aflac in the fourth quarter valued at about $25,000. Edmond DE Rothschild Holding S.A. bought a new position in Aflac in the second quarter valued at about $27,000. Finally, Nalls Sherbakoff Group LLC acquired a new position in Aflac during the fourth quarter worth about $29,000. Institutional investors and hedge funds own 67.44% of the company’s stock.

Trending Headlines about Aflac Here are the key news stories impacting Aflac this week:

Positive Sentiment: Aflac’s quarterly dividend is $0.61 per share, or $2.44 annualized, providing a yield of roughly 2.1%. The company has a long record of dividend growth and a relatively low payout ratio of about 26%, supporting its appeal as a defensive income stock. Neutral Sentiment: Recent earnings were mixed: quarterly revenue of $4.22 billion exceeded analyst expectations of $4.11 billion, but earnings per share of $1.75 narrowly missed the $1.76 consensus. Revenue declined 1% year over year and EPS fell from $1.78 in the prior-year quarter, limiting fundamental momentum. Neutral Sentiment: Wall Street’s overall view remains cautious, with a consensus rating of “Hold” and an average price target near $116.62. Some analysts remain constructive, including Piper Sandler with a $138 target, while others maintain neutral or underweight ratings. Negative Sentiment: Wolfe Research initiated coverage with an “underperform” rating and a $103 price target, implying meaningful downside from recent trading levels. The call adds to existing concerns from Barclays and JPMorgan, which also have cautious ratings or targets. Wolfe Research Starts Aflac at Underperform Negative Sentiment: Japan Post Holdings, Aflac’s major shareholder, sold another 12,700 shares on August 19 for approximately $1.49 million, following sales of 14,200 shares on August 18 and 13,900 shares on August 17. The transactions were conducted under a pre-arranged Rule 10b5-1 plan and represent only a small reduction in its stake, but the repeated selling may weigh on investor sentiment. Aflac SEC Insider Filing Wall Street Analyst Weigh In A number of research firms have recently commented on AFL. UBS Group reissued a “neutral” rating and issued a $124.00 target price (up from $114.00) on shares of Aflac in a report on Wednesday, July 8th. Morgan Stanley lifted their price target on shares of Aflac from $120.00 to $125.00 and gave the company an “equal weight” rating in a report on Thursday, May 21st. Keefe, Bruyette & Woods upped their price objective on shares of Aflac from $120.00 to $125.00 and gave the stock a “market perform” rating in a research report on Tuesday, August 11th. Mizuho set a $116.00 price objective on shares of Aflac in a research note on Monday, August 10th. Finally, JPMorgan Chase & Co. cut their target price on shares of Aflac from $117.00 to $116.00 and set a “neutral” rating on the stock in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, Aflac presently has a consensus rating of “Hold” and a consensus target price of $116.62. View Our Latest Research Report on Aflac

Insider Transactions at Aflac In related news, major shareholder Post Holdings Co. Ltd. Japan sold 63,000 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $118.12, for a total value of $7,441,560.00. Following the completion of the transaction, the insider owned 51,169,435 shares in the company, valued at $6,044,133,662.20. This trade represents a 0.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 497,625 shares of company stock valued at $58,356,483. 0.80% of the stock is owned by company insiders.

Aflac Price Performance Shares of AFL opened at $116.12 on Friday. Aflac Incorporated has a 12-month low of $104.66 and a 12-month high of $130.22. The business has a 50-day simple moving average of $121.55 and a two-hundred day simple moving average of $116.12. The company has a quick ratio of 0.12, a current ratio of 0.12 and a debt-to-equity ratio of 0.29. The stock has a market cap of $58.22 billion, a PE ratio of 12.45, a PEG ratio of 1.87 and a beta of 0.60.

Aflac (NYSE:AFL – Get Free Report) last posted its earnings results on Thursday, August 6th. The financial services provider reported $1.75 EPS for the quarter, missing the consensus estimate of $1.76 by ($0.01). Aflac had a net margin of 26.91% and a return on equity of 13.27%. The firm had revenue of $4.22 billion during the quarter, compared to the consensus estimate of $4.11 billion. During the same quarter in the prior year, the business posted $1.78 earnings per share. Aflac’s revenue for the quarter was down 1.0% compared to the same quarter last year. Analysts anticipate that Aflac Incorporated will post 7.04 earnings per share for the current fiscal year.

Aflac Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Wednesday, August 19th will be paid a $0.61 dividend. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $2.44 annualized dividend and a dividend yield of 2.1%. Aflac’s dividend payout ratio is currently 26.15%.

Aflac Company Profile (Free Report)

Aflac Incorporated (American Family Life Assurance Company of Columbus) is a provider of supplemental insurance products designed to help policyholders manage out-of-pocket health care and living expenses. The company underwrites a range of individual and group policies that typically pay cash benefits directly to insureds when covered events occur, enabling greater financial flexibility for medical treatment, hospital stays, critical illness, and related costs. Aflac’s product mix includes supplemental health insurance, life insurance and other specialty coverages intended to complement primary medical plans.

Founded in the mid-20th century and headquartered in Columbus, Georgia, Aflac distributes its products through a combination of employer-sponsored programs, independent brokers and agents, and direct marketing.

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A Boring Dividend Growth Strategy Becomes a Solid Defensive PlayAflac NYSE: AFL reported second-quarter 2026 net earnings of $1.63 per diluted share and adjusted earnings of $1.75 per diluted share, as the insurer cited continued sales momentum in Japan and growth in its U.S. group insurance operations. Chief Financial Officer Max Brodén said adjusted earnings increased 1.1% year over year to $1.80 per diluted share excluding foreign-currency effects.

Chairman and Chief Executive Officer Dan Amos said the quarter extended a “solid financial start” to the year, supported by operating execution, investment income and capital generation. The company returned $1.3 billion to shareholders during the quarter through $983 million of stock repurchases and $309 million in dividends. For the first six months of 2026, shareholder returns totaled $2.6 billion.

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3 Overlooked Stocks Positioned for the Next Market RotationAmos said Aflac remains committed to extending its record of 43 consecutive annual dividend increases in 2026.

Japan Sales Decline Against Strong Comparison Aflac Japan recorded sales of ¥11 billion in the second quarter, down 5.6% from a year earlier, reflecting a difficult comparison following the prior-year launch of Miraito Cancer Insurance. First-half sales, however, rose 7%, and Amos said the company expects full-year Japan sales to exceed 2025 levels.

MarketBeat Week in Review – 06/08 - 06/12The company cited strong growth from its refreshed Tsumitasu savings-type life product and its Anshin Palette medical insurance product, introduced in December 2025. Tsumitasu accounted for about 20% of total sales, according to Masatoshi Koide, president and representative director of Aflac Life Insurance Japan.

Koide said Tsumitasu has helped broaden Aflac’s customer base among younger consumers and has supported sales of cancer and medical products alongside the savings product. Koichiro Yoshizumi, executive vice president of sales and marketing at Aflac Life Insurance Japan, said concurrent sales of cancer and medical coverage with Tsumitasu have exceeded the company’s initial 25% target.

While medical insurance sales declined sequentially from the first quarter, Yoshizumi said momentum has remained stronger than expected and should continue through the second half. The first-quarter result benefited from extensive preparation surrounding the late-December product launch, he said.

Japan premium persistency was 92.7%, unchanged from the prior quarter. Brodén said the company has experienced elevated lapse-and-reissue activity on recently introduced products, particularly Miraito, but expects that activity to normalize now that the cancer product has been in the market for more than a year.

Japan net earned premiums declined 3.7% in yen terms. Underlying earned premiums, excluding reinsurance, paid-up policies and deferred profit liability effects, declined 1.4%. The Japan benefit ratio was 64%, down 250 basis points year over year. The expense ratio was 20.2%, down 40 basis points despite inflation pressures in Japan. Japan’s pretax margin increased 230 basis points to 34.3%. Brodén said the company now expects Japan’s full-year benefit ratio to land at the high end of its 60% to 63% guidance range, excluding the annual third-quarter actuarial assumption review. He attributed the higher year-to-date ratio partly to fewer lapses of older policies, which carry larger accumulated reserves and would otherwise provide a greater benefit-ratio reduction when they lapse.

U.S. Group Business Gains Momentum In the U.S., Aflac reported a 2.6% year-over-year increase in sales and a 2.3% increase in net earned premiums. Premium persistency improved 20 basis points to 79.4%, while the U.S. pretax margin was 20.9%.

President Virgil Miller said the company’s group life, absence and disability business, together with dental and vision products and group voluntary benefits, generated sales growth of 7.1% in the second quarter. Earned premiums for those group products rose 13%.

Dental and vision sales increased 47%, driven heavily by Aflac’s agency force, Miller said. He added that the company plans to focus in the second half on increasing broker adoption of network dental products while continuing to pair dental and vision sales with voluntary-benefits offerings.

Aflac expects 2026 U.S. net earned premium growth to come in slightly below its previous 3% to 6% guidance range, compared with its earlier expectation for growth at the low end of that range. Brodén said the company still expects its 2025-2027 net earned premium compound annual growth rate to remain within the 3% to 6% range.

The U.S. benefit ratio rose 220 basis points year over year to 49.5%, primarily because of increased incurred group disability claims following favorable results in the prior quarter. The U.S. expense ratio fell 20 basis points to 36.1%.

Portfolio Repositioning and Capital Management Aflac repositioned $4.8 billion of its investment portfolio through switch trades during the quarter. Global Chief Investment Officer Brad Dyslin said the activity was concentrated in Japan and involved harvesting foreign-exchange gains on U.S. dollar assets to offset losses on older, lower-yielding bonds, including Japanese government bonds.

Brodén said the transactions are expected to increase net investment income by more than $50 million on an annualized run-rate basis, while having a limited effect on capital. The company also said the trades improved asset-liability management, reduced the risk of future Financial Services Agency impairments and strengthened portfolio quality.

Aflac ended the quarter with $3.3 billion in unencumbered liquidity, or $2.3 billion above its $1 billion minimum balance. Adjusted leverage was 21.8%, within the company’s 20% to 25% target range. Its estimated regulatory economic solvency ratio was 226%, or 240% including the Undertaking-Specific Parameter, while combined risk-based capital was slightly above 600%.

The company also revised its internal Japan reinsurance target to permit cessions of up to 30% of Financial Services Agency reserves, replacing a prior target of up to 10% of U.S. GAAP assets. Brodén said the expanded capacity is intended to reduce risk, improve balance-sheet efficiency and support higher returns on equity, though the timing and size of future transactions will vary.

Amos said Aflac will continue evaluating acquisition opportunities but will apply a “strenuous test” before pursuing a deal. He said the company has been encouraged by the progress of smaller businesses it previously acquired and would consider larger opportunities if they made financial and strategic sense.

About Aflac (NYSE:AFL)Aflac Incorporated (American Family Life Assurance Company of Columbus) is a provider of supplemental insurance products designed to help policyholders manage out-of-pocket health care and living expenses. The company underwrites a range of individual and group policies that typically pay cash benefits directly to insureds when covered events occur, enabling greater financial flexibility for medical treatment, hospital stays, critical illness, and related costs. Aflac's product mix includes supplemental health insurance, life insurance and other specialty coverages intended to complement primary medical plans.

Founded in the mid-20th century and headquartered in Columbus, Georgia, Aflac distributes its products through a combination of employer-sponsored programs, independent brokers and agents, and direct marketing.

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, /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) today reported its second quarter results.

For the Quarter

Total revenues were $4.1 billion, which was a 1.0% decrease year over year. Net earnings were $825 million, or $1.63 per diluted share, compared with $599 million, or $1.11 per diluted share a year ago. Adjusted earnings* were $883 million, compared with $957 million a year ago, reflecting a decrease of 7.7%. Adjusted earnings per diluted share* decreased 1.7% to $1.75. The annualized return on average shareholders' equity was 10.9%. The annualized adjusted return on equity excluding foreign currency remeasurement* was 16.6%. The company returned $1.3 billion to shareholders, consisting of $983 million in share repurchase and $309 million in dividends. Commenting on the company's results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "Aflac delivered solid earnings for the quarter and for the first six months. These results reflect execution of our strategy, driving long-term value for shareholders. In Japan, we have secured new opportunities through successful product initiatives including Anshin Palette (medical insurance), Miraito (cancer insurance) and Tsumitasu (life insurance). In the U.S., our focus is on meeting the evolving needs of employers and their employees with supplemental health products and related benefits.

"We continue to pursue more profitable growth and the tactical, opportunistic deployment of capital. We treasure our 2025 milestone of 43 consecutive years of dividend increases, and the Board set us on a path to extend this record in 2026. We intend to continue our balanced approach of investing in growth and driving long-term value."

AFLAC INCORPORATED CONSOLIDATED RESULTS

AFLAC INCORPORATED SELECTED OPERATING RESULTS FOR THE QUARTER

(IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)

2Q26

2Q25

% Change

Total revenues

$   4,117

$   4,160

(1.0) %

Net earnings

825

599

37.7 %

Adjusted earnings*

883

957

(7.7) %

Net earnings per share (diluted)

1.63

1.11

46.8 %

Adjusted earnings per share (diluted)*

1.75

1.78

(1.7) %

Total shareholders' equity

30,312

27,200

11.4 %

Total liabilities and shareholders' equity

115,961

124,736

(7.0) %

Total revenues were $4.1 billion in the second quarter of 2026, compared with $4.2 billion in the second quarter of 2025. Net earnings were $825 million, or $1.63 per diluted share, compared with $599 million, or $1.11 per diluted share a year ago. Net earnings in the second quarter of 2026 included net investment losses of $153 million, or $0.30 per diluted share, compared with net investment losses of $421 million, or $0.78 per diluted share a year ago. These net investment losses include net losses from sales and redemptions of $238 million; $77 million of current expected credit losses (CECL); impairments of $11 million;  offset by an $87 million gain from an increase in the fair value of equity securities; and net gains of $86 million on certain derivatives and foreign currency activities.

Adjusted earnings* in the second quarter were $883 million, compared with $957 million in the second quarter of 2025, reflecting a decrease of 7.7%. Adjusted earnings per diluted share* decreased 1.7% to $1.75 in the quarter. The average yen/dollar exchange rate in the second quarter of 2026 was 159.45, or 9.3% weaker than the average rate of 144.60 in the second quarter of 2025. The weaker yen/dollar exchange rate had a negative $0.05 impact on adjusted earnings per share.

Shareholders' equity was $30.3 billion, or $60.35 per share, at June 30, 2026, compared with $27.2 billion, or $50.86 per share, at June 30, 2025. Shareholders' equity at the end of the second quarter included a cumulative increase of $10.4 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $5.6 billion at June 30, 2025 and a net unrealized loss on investment securities and derivatives of $2.8 billion, compared with a net unrealized loss of $1.8 billion at June 30, 2025. Shareholders' equity at the end of the second quarter also included an unrealized foreign currency translation loss of $5.0 billion, compared with an unrealized foreign currency translation loss of $4.3 billion at June 30, 2025.

For the first six months of 2026, total revenues were up 12.0% to $8.5 billion, compared with $7.6 billion in the first half of 2025. Net earnings were $1.8 billion, or $3.61 per diluted share, compared with $628 million, or $1.16 per diluted share, for the first six months of 2025. Adjusted earnings for the first half of 2026 were $1.8 billion, or $3.50 per diluted share, compared with $1.9 billion, or $3.43 per diluted share, in 2025. For the first six months, the average exchange rate was 158.14, or 6.2% weaker than the rate of 148.32 a year ago. Excluding the negative impact of $0.07 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 4.1% to $3.57 for the first six months of 2026.

Shareholders' equity excluding accumulated other comprehensive income (AOCI), or adjusted book value,* was $27.6 billion, or $55.01 per share at June 30, 2026, compared with $27.7 billion, or $51.78 per share, at June 30, 2025. Adjusted book value excluding foreign currency remeasurement* was $20.7 billion, or $41.22 per share at June 30, 2026, compared with $23.0 billion, or $42.97 per share, at June 30, 2025. The annualized adjusted return on equity excluding foreign currency remeasurement* in the second quarter was 16.6%.

AFLAC JAPAN

AFLAC JAPAN SELECTED OPERATING RESULTS FOR THE QUARTER

(IN BILLIONS OF YEN AND MILLIONS OF DOLLARS)

2Q26

2Q25

% Change

2Q26

2Q25

% Change

Total net earned premiums

¥  245  

¥   255   

(3.7) %

$   1,537

$   1,761

(12.7) %

Yen-denominated investment income

30

36

(14.9) %

190

246

(22.8) %

U.S. dollar-denominated investment income

70

67

4.2 %

438

464

(5.6) %

Adjusted net investment income

98

101

(2.9) %

616

699

(11.9) %

Total adjusted revenues

345

357

(3.6) %

2,161

2,472

(12.6) %

Total benefits and claims, net

157

169

(7.5) %

983

1,172

(16.1) %

Total adjusted expenses

70

74

(5.6) %

437

509

(14.1) %

Pretax adjusted earnings

118

114

3.4 %

741

790

(6.2) %

Change in
bps

Premium persistency (12-mo. rolling)

92.7 %

93.7 %

(100)

Total benefits and claims, net / Total net earned premiums

64.0 %

66.5 %

(250)

Total adjusted expenses / Total adjusted revenues

20.2 %

20.6 %

(40)

Pretax adjusted earnings / Total adjusted revenues

34.3 %

32.0 %

230

In yen terms, Aflac Japan's net earned premiums were ¥245.1 billion for the quarter, or 3.7% lower than a year ago, mainly due to the impact of a new external reinsurance transaction for WAYS and Tsumitasu as well as limited pay products reaching paid-up status. Adjusted net investment income decreased 2.9% to ¥98.3 billion, primarily due to reduced call income and lower dollar-denominated floating-rate income partially offset by higher income on U.S. dollar-denominated assets due to the weakening of the yen and higher dollar-denominated fixed-rate income. Total adjusted revenues in yen declined 3.6% to ¥344.6 billion. Pretax adjusted earnings in yen for the quarter increased 3.4% on a reported basis to ¥118.2 billion, primarily driven by favorable benefits. Pretax adjusted earnings decreased 2.1% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment was 34.3%, compared with 32.0% a year ago.

For the first six months, net earned premiums in yen were ¥491.8 billion, or 3.8% lower than a year ago. Adjusted net investment income increased 0.4% to ¥191.0 billion. Total adjusted revenues in yen were down 2.6% to ¥685.4 billion. Pretax adjusted earnings were ¥237.3 billion, or 5.8% higher than a year ago. As a result, the pretax adjusted profit margin for the Japan segment was 34.6%, compared with 31.9% a year ago.

In dollar terms, net earned premiums decreased 12.7% to $1.5 billion in the second quarter. Adjusted net investment income decreased 11.9% to $616 million. Total adjusted revenues declined by 12.6% to $2.2 billion. Pretax adjusted earnings declined 6.2% to $741 million.

For the first six months, net earned premiums in dollars were $3.1 billion, or 9.6% lower than a year ago. Adjusted net investment income decreased 6.1% to $1.2 billion. Total adjusted revenues were down 8.7% to $4.3 billion. Pretax adjusted earnings were $1.5 billion, or 0.8% lower than a year ago.

For the quarter, total new annualized premium sales (sales) decreased 5.6% to ¥19.6 billion, or $123 million, reflecting a high prior-year sales baseline for Miraito cancer insurance following its launch in March 2025, partially offset by strong growth in the refreshed Tsumitasu savings-type life insurance and Anshin Palette, the new medical insurance product launched in December 2025. For the first six months, sales increased 7.0% to ¥37.3 billion, or $235 million.

AFLAC U.S.

AFLAC U.S. SELECTED OPERATING RESULTS FOR THE QUARTER

(IN MILLIONS OF DOLLARS)

2Q26

2Q25

% Change

Total net earned premiums

$ 1,539

$ 1,504

2.3 %

Adjusted net investment income

208

207

0.5 %

Total adjusted revenues

1,771

1,728

2.5 %

Total benefits and claims, net

762

712

7.0 %

Total adjusted expenses

639

628

1.8 %

Pretax adjusted earnings

370

388

(4.6) %

Change
in bps

Persistency rate (12-mo. rolling)

79.4 %

79.2 %

20

Total benefits and claims, net / Total net earned premiums

49.5 %

47.3 %

220

Total adjusted expenses / Total adjusted revenues

36.1 %

36.3 %

(20)

Pretax adjusted earnings / Total adjusted revenues

20.9 %

22.5 %

(160)

Aflac U.S. net earned premiums increased 2.3% to $1.5 billion in the second quarter compared to the prior year, reflecting improved sales and continued strong persistency. Adjusted net investment income increased 0.5% to $208 million. Total adjusted revenues were up 2.5% to $1.8 billion. Pretax adjusted earnings were $370 million, 4.6% lower than a year ago, primarily driven by higher benefits. The pretax adjusted profit margin for the U.S. segment was 20.9%, compared with 22.5% a year ago.

For the first six months, net earned premiums increased 2.9% to $3.1 billion. Adjusted net investment income remained flat at $409 million. Total adjusted revenues were up 2.9% to $3.6 billion. Pretax adjusted earnings were $733 million, 1.7% lower than a year ago. As a result, the pretax adjusted profit margin for the U.S. segment was 20.6%, compared with 21.6% a year ago.

Aflac U.S. sales increased 2.6% in the quarter to $349 million, primarily benefiting from sales of group voluntary benefits and network dental and vision products. For the first six months, total new sales increased 2.8% to $667 million.

CORPORATE AND OTHER 

CORPORATE AND OTHER SELECTED OPERATING RESULTS

(IN MILLIONS OF DOLLARS)

2Q26

2Q25

% Change

Total net earned premiums

$      176

$      206

(14.6) %

Adjusted net investment income

114

128

(10.9) %

Total adjusted revenues

291

336

(13.4) %

Total benefits and claims, net

106

126

(15.9) %

Interest expense

62

51

21.6 %

Other adjusted expenses

133

139

(4.3) %

Total benefits and adjusted expenses

301

316

(4.7) %

Pretax adjusted earnings

(10)

20

(150.0) %

For the quarter, total adjusted revenues decreased 13.4% to $291 million. Pretax adjusted earnings were a loss of $10 million, compared with a $20 million gain last year, primarily driven by lower adjusted net investment income from reduced short-term income and reduced hedge benefits that were partially offset by higher fixed-rate income. Higher interest expense and runoff impacts from closed blocks of business also contributed to the net loss for the quarter.

For the first six months, total adjusted revenues decreased 11.9% to $583 million. Pretax adjusted earnings were a loss of $10 million, compared with a gain of $63 million a year ago.

SHAREHOLDER DIVIDEND

The board of directors declared the third quarter dividend of $0.61 per share, payable on September 1, 2026 to shareholders of record at the close of business on August 19, 2026.

*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force.2 The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune's World's Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol.

1 LIMRA 2025 U.S. Supplemental Health Insurance Total Market Report 

2 As of March 31, 2025, Aflac estimates based on company data 

Aflac Incorporated periodically provides information for investors on its corporate website, investors.aflac.com, including information regarding its commitment to corporate social responsibility and sustainability, press releases, financial information, SEC filings, corporate governance materials, annual meeting information, and other information that may be important to investors.

A copy of Aflac's financial supplement for the quarter can be found at investors.aflac.com.

Aflac Incorporated will webcast its second quarter 2026 earnings conference call on Friday, August 7, 2026 at 8:00 a.m. (ET) .

Note: Tables within this document may not foot due to rounding.

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT

(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

THREE MONTHS ENDED JUNE 30,

2026

2025

% Change

Total revenues

$   4,117

$   4,160

(1.0) %

Benefits and claims, net

1,852

2,010

(7.9)

Total acquisition and operating expenses

1,270

1,328

(4.4)

Earnings before income taxes

995

822

21.0

Income taxes

170

223

Net earnings

$      825

$      599

37.7 %

Net earnings per share – basic

$     1.64

$     1.12

46.4 %

Net earnings per share – diluted

1.63

1.11

46.8

Shares used to compute earnings per share (000):

Basic

504,123

536,688

(6.1) %

Diluted

505,578

538,425

(6.1)

Dividends paid per share

$     0.61

$     0.58

5.2 %

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT

(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

SIX MONTHS ENDED JUNE 30,

2026

2025

% Change

Total revenues

$  8,463

$  7,558

12.0 %

Benefits and claims, net

3,684

3,955

(6.9)

Total acquisition and operating expenses

2,559

2,636

(2.9)

Earnings before income taxes

2,220

967

129.6

Income taxes

376

339

Net earnings

$  1,844

$     628

193.6 %

Net earnings per share – basic

$    3.63

$    1.16

212.9 %

Net earnings per share – diluted

3.61

1.16

211.2

Shares used to compute earnings per share (000):

Basic

508,572

540,676

(5.9) %

Diluted

510,150

542,629

(6.0)

Dividends paid per share

$    1.22

$    1.16

5.2 %

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET

(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)

JUNE 30,

2026

2025

% Change

Assets:

Total investments and cash

$ 103,003

$ 111,769

(7.8) %

Deferred policy acquisition costs

8,948

9,296

(3.7)

Other assets

4,010

3,671

9.2

Total assets

$ 115,961

$ 124,736

(7.0) %

Liabilities and shareholders' equity:

Policy liabilities

$  64,348

$  78,904

(18.4) %

Notes payable and lease obligations

8,729

8,933

(2.3)

Other liabilities

12,572

9,699

29.6

Shareholders' equity

30,312

27,200

11.4

Total liabilities and shareholders' equity

$ 115,961

$ 124,736

(7.0) %

Shares outstanding at end of period (000)

502,257

534,809

(6.1) %

NON-U.S. GAAP FINANCIAL MEASURES

This document includes references to the Company's financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the Japanese yen weakens, translating Japanese yen into U.S. dollars results in fewer U.S. dollars being reported. When the Japanese yen strengthens, translating Japanese yen into U.S. dollars results in more U.S. dollars being reported. Consequently, Japanese yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while Japanese yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company's business is conducted in Japanese yen and never converted into U.S. dollars but translated into U.S. dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

The company defines the non-U.S. GAAP financial measures included in this earnings release as follows:

Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management's control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company's insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company's insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company's insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively. Adjusted earnings excluding current period foreign currency impact are computed using the average foreign exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management's control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively. Adjusted return on equity is annualized adjusted earnings divided by average shareholders' equity, excluding accumulated other comprehensive income. Management uses adjusted return on equity to evaluate the financial performance of the Company's insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company's insurance business. The Company considers adjusted return on equity important as it excludes components of accumulated other comprehensive income, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on equity as determined using annualized net earnings and average total shareholders' equity. Adjusted return on equity excluding foreign currency remeasurement is annualized adjusted earnings divided by average shareholders' equity, excluding both accumulated other comprehensive income and the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The Company considers adjusted return on equity excluding foreign currency remeasurement important because it excludes both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency remeasurement is return on equity as determined using annualized net earnings and average total shareholders' equity. Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign currency exchange risks. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income. Adjusted book value is the U.S. GAAP book value (representing total shareholders' equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude accumulated other comprehensive income, which fluctuates due to market movements that are outside management's control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively. Adjusted book value excluding foreign currency remeasurement is the U.S. GAAP book value (representing total shareholders' equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet and excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. Adjusted book value excluding foreign currency remeasurement per common share is adjusted book value excluding foreign currency remeasurement at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share important as they exclude both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measures for adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share are total book value and total book value per common share, respectively. Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company's investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income. Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management's control, while excluding the components that are within management's control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses. RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS

(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)

THREE MONTHS ENDED JUNE 30,

2026

2025

% Change

Net earnings

$      825

$      599

37.7 %

Items impacting net earnings:

Adjusted net investment (gains) losses

106

377

Other and non-recurring (income) loss

—

—

Income tax (benefit) expense on items excluded

from adjusted earnings

(48)

(19)

Adjusted earnings

883

957

(7.7) %

Current period foreign currency impact1

27

N/A

Adjusted earnings excluding current period foreign
     currency impact2

$      910

$      957

(4.9) %

Net earnings per diluted share

$     1.63

$     1.11

46.8 %

Items impacting net earnings:

Adjusted net investment (gains) losses

0.21

0.70

Other and non-recurring (income) loss

—

—

Income tax (benefit) expense on items excluded

from adjusted earnings

(0.09)

(0.04)

Adjusted earnings per diluted share

1.75

1.78

(1.7) %

Current period foreign currency impact1

0.05

N/A

Adjusted earnings per diluted share excluding
     current period foreign currency impact2

$     1.80

$     1.78

1.1 %

1

Prior period foreign currency impact reflected as "N/A" to isolate change for current period only.

2

Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.

RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS

(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)

SIX MONTHS ENDED JUNE 30,

2026

2025

% Change

Net earnings

$ 1,844

$   628

193.6 %

Items impacting net earnings:

Adjusted net investment (gains) losses

3

1,301

Other and non-recurring (income) loss

—

53

Income tax (benefit) expense on items excluded

from adjusted earnings

(63)

(119)

Adjusted earnings

1,784

1,863

(4.2) %

Current period foreign currency impact1

35

N/A

Adjusted earnings excluding current period foreign
     currency impact2

$ 1,819

$ 1,863

(2.4) %

Net earnings per diluted share

$   3.61

$   1.16

211.2 %

Items impacting net earnings:

Adjusted net investment (gains) losses

0.01

2.40

Other and non-recurring (income) loss

—

0.10

Income tax (benefit) expense on items excluded

from adjusted earnings

(0.12)

(0.22)

Adjusted earnings per diluted share

3.50

3.43

2.0 %

Current period foreign currency impact1

0.07

N/A

Adjusted earnings per diluted share excluding
     current period foreign currency impact2

$   3.57

$   3.43

4.1 %

1

Prior period foreign currency impact reflected as "N/A" to isolate change for current period only.

2

Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.

RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES

(UNAUDITED – IN MILLIONS)

THREE MONTHS ENDED JUNE 30,

2026

2025

% Change

Net investment (gains) losses

$      153

$      421

(63.7) %

Items impacting net investment (gains) losses:

Amortized hedge costs

(12)

(11)

Amortized hedge income

19

30

Net interest income (expense) from derivatives associated

     with certain investment strategies

(54)

(64)

Impact of interest from derivatives associated with

     notes payable1

—

—

Adjusted net investment (gains) losses

$      106

$      377

(71.9) %

1 Amounts are included with interest expenses that are a component of adjusted expenses.

RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME

(UNAUDITED – IN MILLIONS)

THREE MONTHS ENDED JUNE 30,

2026

2025

% Change

Net investment income

$      984

$   1,081

(9.0) %

Items impacting net investment income:

Amortized hedge costs

(12)

(11)

Amortized hedge income

19

30

Net interest income (expense) from derivatives associated

     with certain investment strategies

(54)

(64)

Adjusted net investment income

$      937

$   1,036

(9.6) %

RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES

(UNAUDITED – IN MILLIONS)

SIX MONTHS ENDED JUNE 30,

2026

2025

% Change

Net investment (gains) losses

$   104

$ 1,384

(92.5) %

Items impacting net investment (gains) losses:

Amortized hedge costs

(27)

(18)

Amortized hedge income

37

60

Net interest income (expense) from derivatives associated

     with certain investment strategies

(111)

(129)

Impact of interest from derivatives associated with

     notes payable1

—

4

Adjusted net investment (gains) losses

$      3

$ 1,301

(99.8) %

1 Amounts are included with interest expenses that are a component of adjusted expenses.

RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME

(UNAUDITED – IN MILLIONS)

SIX MONTHS ENDED JUNE 30,

2026

2025

% Change

Net investment income

$ 1,940

$ 2,036

(4.7) %

Items impacting net investment income:

Amortized hedge costs

(27)

(18)

Amortized hedge income

37

60

Net interest income (expense) from derivatives associated

     with certain investment strategies

(111)

(129)

Adjusted net investment income

$ 1,839

$ 1,949

(5.6) %

RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE

(EXCLUDING FOREIGN CURRENCY REMEASUREMENT)

(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

JUNE 30,

2026

2025

% Change

U.S. GAAP book value

$  30,312

$  27,200

Less:

Unrealized foreign currency translation gains (losses)

(5,048)

(4,282)

Unrealized gains (losses) on securities and derivatives

(2,769)

(1,845)

Effect of changes in discount rate assumptions

10,415

5,594

Pension liability adjustment

83

42

Total AOCI

2,681

(491)

Adjusted book value

$  27,631

$  27,691

Less:

Foreign currency remeasurement gains (losses)

6,927

4,711

Adjusted book value excluding foreign currency remeasurement

$  20,704

$  22,980

Number of outstanding shares at end of period (000)

502,257

534,809

U.S. GAAP book value per common share

$   60.35

$   50.86

18.7 %

Less:

Unrealized foreign currency translation gains (losses) per common share

(10.05)

(8.01)

Unrealized gains (losses) on securities and derivatives per common share

(5.51)

(3.45)

Effect of changes in discount rate assumptions

     per common share

20.74

10.46

Pension liability adjustment per common share

0.17

0.08

Total AOCI per common share

5.34

(0.92)

Adjusted book value per common share

$   55.01

$   51.78

6.2 %

Less:

Foreign currency remeasurement gains (losses) per common share

13.79

8.81

Adjusted book value excluding foreign currency remeasurement per common share

$   41.22

$   42.97

(4.1) %

RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE

(EXCLUDING IMPACT OF FOREIGN CURRENCY)

THREE MONTHS ENDED JUNE 30,

2026

2025

U.S. GAAP ROE - Net earnings1

10.9 %

9.0 %

Impact of excluding unrealized foreign currency translation gains (losses)

(2.0)

(1.5)

Impact of excluding unrealized gains (losses) on securities and derivatives

(1.1)

(0.5)

Impact of excluding effect of changes in discount rate assumptions

3.9

1.6

Impact of excluding pension liability adjustment

—

—

Impact of excluding AOCI

0.9

(0.4)

U.S. GAAP ROE - less AOCI

11.9

8.6

Differences between adjusted earnings and net earnings2

0.8

5.1

Adjusted ROE - reported

12.7

13.7

Impact of excluding gains (losses) associated with foreign currency remeasurement3

3.9

2.9

Adjusted ROE, excluding foreign currency remeasurement

16.6

16.6

1

U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.

2

See separate reconciliation of net income to adjusted earnings.

3

Impact of gains/losses associated with foreign currency remeasurement is calculated by excluding the cumulative (beginning January 1, 2021) foreign  currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The impact is the difference of adjusted return on equity - reported compared with adjusted return on equity, excluding from shareholders' equity, gains/losses associated with foreign currency remeasurement.

RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE 

(EXCLUDING IMPACT OF FOREIGN CURRENCY)

SIX MONTHS ENDED JUNE 30,

2026

2025

U.S. GAAP ROE - Net earnings1

12.3 %

4.7 %

Impact of excluding unrealized foreign currency translation gains (losses)

(2.2)

(0.8)

Impact of excluding unrealized gains (losses) on securities and derivatives

(1.0)

(0.2)

Impact of excluding effect of changes in discount rate assumptions

4.0

0.7

Impact of excluding pension liability adjustment

—

—

Impact of excluding AOCI

0.9

(0.3)

U.S. GAAP ROE - less AOCI

13.2

4.4

Differences between adjusted earnings and net earnings2

(0.4)

8.7

Adjusted ROE - reported

12.8

13.1

Impact of excluding gains (losses) associated with foreign currency remeasurement3

3.9

3.0

Adjusted ROE, excluding foreign currency remeasurement

16.7

16.1

1

U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.

2

See separate reconciliation of net income to adjusted earnings.

3

Impact of gains/losses associated with foreign currency remeasurement is calculated by excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The impact is the difference of adjusted return on equity - reported compared with adjusted return on equity, excluding from shareholders' equity, gains/losses associated with foreign currency.

EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1

(SELECTED PERCENTAGE CHANGES, UNAUDITED)

THREE MONTHS ENDED JUNE 30,

Including

Currency

Changes

Excluding

Currency

Changes2

Net earned premiums3

(6.3) %

(1.1) %

Adjusted net investment income4

(9.6)

(7.6)

Total benefits and expenses

(6.5)

(1.5)

Adjusted earnings

(7.7)

(4.9)

Adjusted earnings per diluted share

(1.7)

1.1

1 

Refer to previously defined adjusted earnings and adjusted earnings per diluted share.

2 

Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes. 

3 

Net of reinsurance

4 

Refer to previously defined adjusted net investment income.

EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1

(SELECTED PERCENTAGE CHANGES, UNAUDITED)

SIX MONTHS ENDED JUNE 30,

Including

Currency

Changes

Excluding

Currency

Changes2

Net earned premiums3

(4.2) %

(0.9) %

Adjusted net investment income4

(5.6)

(4.3)

Total benefits and expenses

(4.5)

(1.2)

Adjusted earnings

(4.2)

(2.4)

Adjusted earnings per diluted share

2.0

4.1

1 

Refer to previously defined adjusted earnings and adjusted earnings per diluted share.

2 

Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.

3 

Net of reinsurance

4 

Refer to previously defined adjusted net investment income.

GLOSSARY OF OPERATIONAL MEASURES

The Company defines the operational measures included in this document as follows:

Operating ratios are used to evaluate the Company's financial condition and profitability. Examples include: (1) Ratios to total adjusted revenues, which present expenses as percentage of total revenues and (2) Ratios to total premium, including benefit ratio. Operating ratios include: Benefit Ratio and Expense Ratio. New annualized premium sales are sometimes referred to as new sales or sales. An operating measure that is not reflected on the Company's financial statements. New annualized premium sales generally represent annual premiums on policies and riders the Company sold and incremental increases from policy conversions that would be collected over a 12-month period assuming the policies remain in force for that entire period. For Aflac Japan, new annualized premium sales are determined by applications submitted during the reporting period. For Aflac U.S., new annualized premium sales are determined by applications that are issued during the reporting period. Policy conversions are defined as the positive difference in the annualized premium when a policy upgrades in the current reporting period. The Company believes that this metric is a key indicator of the Company's future source of earnings. Premium persistency is the percentage of premiums remaining in force at the end of a period, usually one year, and presented on a trailing 12-month average basis. For example, 95% persistency would mean that 95% of the premiums in force at the beginning of a period are still in force at the end of the period. The Company believes that this metric is a key driver of in force levels, which is a key measure of the size of the Company's business and future sources of earnings. FORWARD-LOOKING INFORMATION 

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. Aflac Incorporated (the Parent Company) and its subsidiaries (collectively with the Parent Company, the Company) desire to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by Company officials in communications with the financial community and contained in documents filed with or furnished to the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as "expect," "anticipate," "believe," "goal," "objective," "strategy," "may," "should," "estimate," "intend," "project," "future," "will," "assume," "potential," "target," "outlook," "continue" or similar words as well as specific projections of future results, generally qualify as forward-looking. The Company undertakes no obligation to update such forward-looking statements, except as may be required by law.

The Company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

difficult conditions in global capital markets and the economy, including inflation defaults and credit downgrades of investments global fluctuations in interest rates and exposure to significant interest rate risk concentration of business in Japan limited availability of acceptable Japanese yen-denominated investments foreign currency fluctuations in the yen/dollar exchange rate differing interpretations applied to investment valuations significant valuation judgments in determination of expected credit losses recorded on the Company's investments decreases in the Company's financial strength or debt ratings decline in creditworthiness of other financial institutions the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners deviations in actual experience from pricing and reserving assumptions ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems, and uncertainty regarding the impact of the incident involving unauthorized access to the Company's network in June 2025 subsidiaries' ability to pay dividends to the Parent Company inherent limitations to risk management policies and procedures operational risks of third-party vendors tax rates applicable to the Company may change failure to comply with restrictions on policyholder privacy and information security extensive regulation and changes in law or regulation by governmental authorities competitive environment and ability to anticipate and respond to market trends catastrophic events, including, but not limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events ability to protect the Aflac brand and the Company's reputation ability to effectively manage key executive succession changes in accounting standards level and outcome of litigation or regulatory inquiries allegations or determinations of worker misclassification in the United States Analyst and investor contact - David A. Young, 706.596.3264; 800.235.2667 or [email protected]
Media contact - Ines Gutzmer, 762.207.7601 or [email protected]

SOURCE Aflac Incorporated

Aflac (AFL 0.40%) is an insurance company, but it sells what is known as supplemental insurance. These policies are meant to be bought alongside other insurance, paying out only in the event of very specific outcomes, like a cancer diagnosis. However, that isn't the biggest issue you need to monitor when you look at Aflac.

Aflac is different but similar Aflac sells its insurance products directly to consumers. A typical policy example is for cancer coverage. A customer will pay Aflac premiums and, if a cancer diagnosis is made, Aflac will pay a set dollar amount to help cover the customer's out-of-pocket expenses. Still, like all insurers, Aflac makes money if it collects more in premiums than it pays out in claims.

Image source: Getty Images.

But even when it pays claims, it still collects the premiums up front, creating what is known as "float." Until it has to pay out that cash to cover claims, Aflec gets to invest the float to generate income. So far, the business model is different but roughly similar to a typical insurance company. And Aflec has done well as a business, highlighted by its 43-year streak of annual dividend increases. The last hike was a solid 5.2% made at the start of 2026.

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There's a catch that investors need to know about The really big difference with Aflac is its geographic reach. The company generated $4.3 billion in revenue in the first quarter of 2026, but roughly $1.6 billion of that came from its Japanese operations. That's more than a third of the company's top line. That said, the company's Japanese business had pre-tax adjusted earnings of $759 million in the quarter, while the U.S. business produced pre-tax adjusted earnings of just $363 million. That means Japan accounts for roughly two-thirds of the company's pre-tax adjusted earnings.

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If you own Aflac, you need to pay close attention to the relationship between the U.S. dollar and the Japanese yen. A significant change in either direction can materially impact the company's financial results. Obviously, the company has handled this issue well over the years, or it wouldn't have increased its dividend for 43 consecutive years. Notably, it aggressively repurchases its own stock, which helps sustain dividend growth. Fewer shares reduce the burden of the dividend and provide more room for future dividend increases.

Watch, but don't worry too much All in, the company's exposure to Japan probably isn't a good reason to avoid the stock. However, it is something that you'll want to know about and monitor. Aflac, with a roughly 2% dividend yield, is a steady dividend grower, but one that comes with some unique twists.