Track market-moving stories before they get noisy

As market volatility and shifting economic conditions test investor resolve, high-quality dividend payers remain a cornerstone for long-term growth and income.

Josh Brown – the chief executive of Ritholtz Wealth Management – recently highlighted a trio of industry-leading insurance firms as top dividend stocks to own in 2026: The Travelers Companies, Chubb, and Aflac.

Known for their disciplined underwriting, resilient balance sheets, and decades-long track records of steadily growing payouts, these powerhouse names offer defensive stability paired with reliable income generation.

Here is a closer look at why these three insurance giants stand out in Brown’s vision for a winning dividend strategy.

Travelers has recently validated the bullish thesis with blockbuster Q2 earnings – delivering core EPS of $10.04, nearly double the consensus estimate set at $5.39.

A 14% year-on-year pop in investment income and reduced catastrophe losses resulted in a nearly 46% increase in the company’s quarterly net income to $2.2 billion.

Beyond rate dynamics, efficiency gains from its proprietary artificial intelligence (AI) underwriting platform, “Travis,” expanded underlying insurance margins.

Brown also recommends owning TRV stock because it is approaching “dividend aristocrat” status, with 22 consecutive years of payout increases.

He sees the post-earnings pop as proof of a self-funding growth engine, recommending long positions with raised stop-loss levels at $325.

Note that Travelers has also retired some 70% of its outstanding shares since 2006 – which makes it even more attractive to own in the back half of 2026.

As the largest US commercial insurer, Chubb leverages immense global scale across 54 countries to write profitable premium volume.

In Q1, the company’s operating earnings soared 85% on a year-over-year basis to $6.82 per share, while net income has nearly doubled from $5.3 billion in FY22 to $10.3 billion in FY25.

Crucially, the NYSE-listed firm’s $173 billion investment portfolio generates accelerating returns as maturing fixed-income assets are redeployed at higher interest rates.

Backed by 33 consecutive years of dividend hikes and a $4.08 annual dividend payout, CB shares show strong structural momentum.

Josh Brown also highlighted a rapid bullish gap-reversal pattern on the chart – noting that holding technical support above the $320 range positions the carrier for a breakout.

Aflac stock delivers defensive cash flow through its dominant supplemental health presence in the US and Japan, with Q1 sales coming in up 25.5% alongside margins expanding to 35%.

Generating up to $3 billion in annual free cash flow, the company consistently directs capital into share repurchases and cash payouts.

AFL has raised dividend payments for 43 straight years – the longest streak among Brown’s picks. At the time of writing, it yields nearly 2% and is hovering around an all-time high of $125.

Brown characterized Aflac’s chart as a clean, rising uptrend, pointing to solid technical support at its 50-day moving average ($117) and key trendline floor at $110 for long-term positioning.

That said, Wall Street currently rates AFL at Hold only, with the mean price target of roughly $116 indicating potential “downside” from current levels.

COLUMBUS, Ga., June 30, 2026 /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) announced today that it will release second quarter 2026 financial results after the market closes on Thursday, August 6, 2026.

Designer Rachel Zoe and Aflac make fashion statement to urge Americans to check for cancer PR Newswire COLUMBUS,

SPARTANBURG, S.C.--(BUSINESS WIRE)-- #WeAreAFL--AFL held its tenth annual Imagine That! fundraising campaign, supporting communities around the world where AFL operates. This year's campaign, themed "Impact the Pack: Refuel the Future," concluded with a $2,224,061 donation to organizations around the world including the United States, Canada, Mexico, Europe, Australia and New Zealand. All AFL locations participated in the campaign by encouraging associates to consider contributing financially to their comm.

This recognition is part of Aflac's broader Check for Cancer initiative to expand awareness of the importance of screening as the path for early detection

, /PRNewswire/ -- Aflac Incorporated, the leading provider of supplemental health insurance in the U.S.,1 is expanding its Check for Cancer initiative during Cancer Prevention and Early Detection Month by launching the Check for Cancer Champions program. In this inaugural edition, the program will feature six individuals who have demonstrated unwavering commitment to expanding awareness of the importance of cancer screening and the need to act, as preventive care and early detection can save lives.

Aflac Check for Cancer Champion, Ernie Johnson Jr.

Aflac Check for Cancer Champion, Adamari López

Aflac Check for Cancer Champion, David Pollack

Aflac Check for Cancer Champion, Dr. Heather Bittner Fagan

Aflac Check for Cancer Champion, Dr. Ryan Schoenfeld

Aflac Check for Cancer Champion, Brian Ryll The program comes at a critical time — according to American Cancer Society (ACS) statistics, 1 in 3 people will develop cancer in their lifetime,2 yet the 2025 Aflac Wellness Matters Survey® indicates that more than 90% of people have put off getting a checkup or a recommended health screening.3 ACS statistics further note that early detection can push survival rates above 90% for many types of cancer.4

The inaugural 2026 Check for Cancer Champions are united by a shared commitment to improving early detection and saving lives through action and advocacy. The honorees are:

Ernie Johnson Jr., Sports Broadcasting Hall of Fame member, two-time cancer survivor and advocate for men's health screenings Adamari López, Univision host, actor and breast cancer survivor who has used her platform to encourage women, particularly in the Hispanic community, to prioritize their health David Pollack, former NFL player and college football analyst who became an advocate for early detection after his wife Lindsey was diagnosed with cancer in 2025 Dr. Heather Bittner Fagan, practicing physician and recipient of ACS's Cancer Control Career Development Award, recognized for her leadership in cancer prevention and screening Dr. Ryan Schoenfeld, CEO of the Mark Foundation for Cancer Research, a global philanthropy that supports research that will transform the prevention, diagnosis and treatment of cancer Brian Ryll, President of the Professional Fire Fighters of New Hampshire and cancer prevention advocate "If there's one thing I've learned through two experiences with cancer, it's that I've been provided the opportunity and the responsibility to help the next person get through it," Ernie Johnson Jr. said. "I am humbled to be selected as one of Aflac's 2026 Check for Cancer Champions. It means the world to me."

The Check for Cancer Champions program is part of Aflac's Check for Cancer initiative, a bold, national movement to increase cancer screenings by 10% over 10 years. Aflac uses the familiar checkered pattern seen in everyday life as a powerful reminder to prioritize early detection through a simple call to action: See a check, get checked.

"Aflac is extremely pleased to honor Ernie, Adamari, David, Dr. Fagan, Dr. Schoenfeld and Brian as inaugural Check for Cancer Champions for the example they set in raising awareness of the importance of cancer screening and early detection," Aflac Incorporated and Aflac U.S. President Virgil Miller said. "Aflac is fully committed to the Check for Cancer initiative, and we realize that to move from initiative to movement, we need to bring more, powerful voices to the program. Each of these honorees has used their voice, expertise or experience to encourage others to prioritize preventive care, and we are grateful for the impact they are making in their communities and fields. That is the very definition of being a champion."

As part of the program, Aflac will make a $5,000 donation to a cancer nonprofit selected by each honoree. They will also be presented with a custom Check for Cancer jacket in recognition of their commitment and advocacy for individuals to have better health outcomes by prioritizing early detection.

On social media, when you tag @Aflac and include #CheckForCancer, Aflac will donate $5 to the Aflac Cancer and Blood Disorders Center of Children's Healthcare of Atlanta, up to $1 million.

Go to Aflac.com/CheckForCancer for more information.

About the Check for Cancer Champions:

Ernie Johnson Jr. is a two-time cancer survivor who has overcome non-Hodgkin's lymphoma and prostate cancer. He credits early detection as a key part of his recovery and has used his platform to advocate for regular cancer screenings, especially for prostate cancer. Johnson serves as a global ambassador for ZERO Prostate Cancer and has also supported childhood cancer initiatives, including the Aflac Cancer and Blood Disorders Center at Children's Healthcare of Atlanta. He has named the Love You Too Foundation as his charity of choice for Aflac's $5,000 donation.

Adamari López is a writer, actor, television host, mom and breast cancer survivor who has become a prominent advocate for early detection and proactive health care. Diagnosed at age 33, she has used her platform to encourage women, especially within the Hispanic community, to prioritize self-exams, routine screenings and regular checkups. López has named Susan G. Komen Puerto Rico as her charity of choice for Aflac's $5,000 donation.

David Pollack is a former NFL player, University of Georgia standout and college football analyst who became a vocal advocate for cancer awareness after his wife Lindsey was diagnosed with brain cancer in 2025. Throughout her treatment and recovery, Pollack used his platform to share updates, support others and raise awareness about the importance of early detection. He has named the V Foundation as his charity of choice for Aflac's $5,000 donation.

Dr. Heather Bittner Fagan is a practicing family physician in Claymont, Delaware, who has helped underserved communities for more than 20 years. She has made regional and national contributions to research on cancer screening in primary care and underserved populations. Dr. Fagan also serves as a consultant to ACS on lung cancer screening guidelines and has published extensively on cancer prevention. She has named Friends of the Helen F. Graham Cancer Center & Research Institute in Delaware as her charity of choice for Aflac's $5,000 donation.

Dr. Ryan Schoenfeld is CEO of The Mark Foundation for Cancer Research, a philanthropic organization focused on transforming the prevention, diagnosis and treatment of cancer. Under his leadership, the foundation recently spearheaded a landmark coalition of leading cancer research funders working together to accelerate the development of new screening tools for the world's most lethal and hard-to-detect cancers. Dr. Schoenfeld will accept the $5,000 award on behalf of The Mark Foundation for Cancer Research, which will apply the funds toward its Early Detection Award program.

Brian Ryll is president of the Professional Fire Fighters of New Hampshire. Under his leadership, the state of New Hampshire enacted Senate Bill 352 to provide nearly 4,000 professional firefighters with access to comprehensive early detection screenings. Backed by $5 million in state funding, screenings include multi-cancer early detection blood tests, diagnostic ultrasounds and low-dose lung CT scans, significantly improving the chances of identifying cancer at its earliest stages. He has named the Dana-Farber Cancer Institute as his charity of choice for Aflac's $5,000 donation.

FAQs about the Check for Cancer Champions program

What is Aflac's Check for Cancer Champions program? 
Part of Aflac's broader Check for Cancer movement, the Check for Cancer Champions program recognizes individuals who help raise awareness of the importance of cancer screening, preventive care and early detection. The honor-based initiative celebrates leaders and advocates whose sustained commitment helps encourage more people to prioritize getting checked. Why is Aflac launching the Check for Cancer Champions program now?
Aflac launched the program at a critical time, as cancer remains a significant health concern, and many Americans continue to delay routine checkups and recommended screenings. With early detection shown to significantly improve survival rates for many cancers, the Check for Cancer Champions program reinforces the need for preventive care nationwide. How does the Check for Cancer Champions program support cancer advocacy?
Aflac is making a $5,000 donation to nonprofits — chosen by each Check for Cancer Champion — that support cancer-related initiatives. In addition, each honoree receives a custom Check for Cancer jacket in recognition of their advocacy and commitment to early detection. 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 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/español. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."

Media contact: Jon Sullivan, 706-763-4813 or [email protected]
Analyst and investor contact: David A. Young, 706-596-3264, 800-235-2667 or [email protected]

SOURCE Aflac

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

For the Quarter

Total revenues were $4.3 billion , which was a 27.9% increase year over year. Net earnings were $1.0 billion, or $1.98 per diluted share, compared with $29 million, or $0.05 per diluted share a year ago. Adjusted earnings* were $901 million, compared with $906 million a year ago, reflecting a decrease of 0.6%. Adjusted earnings per diluted share* increased 5.4% to $1.75. The annualized return on average shareholders' equity was 13.7%. The annualized adjusted return on equity excluding foreign currency remeasurement* was 16.4%. The company returned $1.3 billion to shareholders, consisting of $1.0 billion in share repurchase and $315 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. These results reflect our focused execution of our strategy and thus creating long-term value for shareholders. We have attracted new business through successful product initiatives, including Anshin Palette (medical insurance), Miraito (cancer insurance), and Tsumitasu (life insurance) in Japan and group voluntary benefits, network dental and vision, as well as group life and disability in the U.S.

"We remain focused on 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 has set us on a path to extend this record when it increased the first quarter dividend 5.2% and declared the same dividend of $0.61 for the second quarter. 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)

1Q26

1Q25

% Change

Total revenues

$    4,346

$    3,398

27.9 %

Net earnings

1,019

29

3,413.8 %

Adjusted earnings*

901

906

(0.6) %

Net earnings per share (diluted)

1.98

0.05

3,860.0 %

Adjusted earnings per share (diluted)*

1.75

1.66

5.4 %

Total shareholders' equity

29,961

26,338

13.8 %

Total liabilities & shareholders' equity

116,280

120,258

(3.3) %

Total revenues were $4.3 billion in the first quarter of 2026, compared with $3.4 billion in the first quarter of 2025. Net earnings were $1.0 billion, or $1.98 per diluted share, compared with $29 million, or $0.05 per diluted share a year ago. Net earnings in the first quarter of 2026 included net investment gains of $49 million, or $0.10 per diluted share, compared with net investment losses of $963 million, or $1.76 per diluted share a year ago. These net investment gains were driven by net gains of $164 million on certain derivatives and foreign currency activities offset by $61 million of current expected credit losses (CECL), impairments of $24 million; net losses from sales and redemptions of $16 million; and a $14 million loss from a decrease in the fair value of equity securities.

Adjusted earnings* in the first quarter were $901 million, compared with $906 million in the first quarter of 2025, reflecting a decrease of 0.6%. Adjusted earnings per diluted share* increased 5.4% to $1.75 in the quarter. Variable investment income ran $14 million below the company's long-term return expectations. The average yen/dollar exchange rate in the first quarter of 2026 was 156.87, or 2.8% weaker than the average rate of 152.40 in the first quarter of 2025. The weaker yen/dollar exchange rate had a negative $0.02 impact on adjusted earnings per share.

Shareholders' equity was $30.0 billion, or $58.69 per share, at March 31, 2026, compared with $26.3 billion, or $48.55 per share, at March 31, 2025. Shareholders' equity at the end of the first quarter included a cumulative increase of $9.5 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $3.9 billion at March 31, 2025 and a net unrealized loss on investment securities and derivatives of $2.7 billion, compared with a net unrealized loss of $1.3 billion at March 31, 2025. Shareholders' equity at the end of the first quarter also included an unrealized foreign currency translation loss of $5.0 billion, compared with an unrealized foreign currency translation loss of $4.5 billion at March 31, 2025.

Shareholders' equity excluding AOCI (or adjusted book value*) was $28.1 billion, or $54.96 per share at March 31, 2026, compared with $28.2 billion, or $51.98 per share, at March 31, 2025. Adjusted book value excluding foreign currency remeasurement* was $21.8 billion, or $42.71 per share at March 31, 2026, compared with $23.1 billion, or $42.61 per share, at March 31, 2025. The annualized adjusted return on equity excluding foreign currency remeasurement* in the first quarter was 16.4%.

AFLAC JAPAN

AFLAC JAPAN SELECTED OPERATING RESULTS FOR THE QUARTER

(IN BILLIONS OF YEN AND MILLIONS OF DOLLARS)

1Q26

1Q25

% Change

1Q26

1Q25

% Change

Total net earned premiums

¥  247   

¥    256   

(3.8) %

$    1,573

$    1,681

(6.4) %

Yen-denominated investment income

31

34

(9.2) %

197

224

(12.1) %

U.S. dollar-denominated investment
income

64

56

13.9 %

409

369

10.8 %

Adjusted net investment income

93

89

4.0 %

591

586

0.9 %

Total adjusted revenues

341

346

(1.7) %

2,172

2,272

(4.4) %

Total benefits and claims, net

155

169

(7.9) %

990

1,105

(10.4) %

Total adjusted expenses

66

68

(2.2) %

423

445

(4.9) %

Pretax adjusted earnings

¥  119   

¥    110   

8.3 %

759

722

5.1 %

Change in
bps

Premium persistency (12-mo. rolling)

92.8 %

93.8 %

(100)

Total benefits and claims (net) / Net
earned premiums

62.9 %

65.8 %

(290)

Total adjusted expenses / Total
adjusted revenues

19.5 %

19.6 %

(10)

Pretax adjusted earnings / Total
adjusted revenues

35.0 %

31.8 %

320

In yen terms, Aflac Japan's net earned premiums were ¥246.7 billion for the quarter, or 3.8% 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 increased 4.0% to ¥92.8 billion, primarily due to higher dollar-denominated fixed-rate income resulting from higher volume and higher variable net investment income. This was partially offset by lower dollar-denominated floating rate income due to lower volume and rates as well as reduced call income. Total adjusted revenues in yen declined 1.7% to ¥340.7 billion. Pretax adjusted earnings in yen for the quarter increased 8.3% on a reported basis to ¥119.1 billion, primarily driven by favorable benefits. Pretax adjusted earnings also increased 6.6% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment was 35.0%, compared with 31.8% a year ago.

In dollar terms, net earned premiums decreased 6.4% to $1.6 billion in the first quarter. Adjusted net investment income increased 0.9% to $591 million. Total adjusted revenues declined by 4.4% to $2.2 billion. Pretax adjusted earnings increased 5.1% to $759 million.

For the quarter, total new annualized premium sales (sales) increased 25.5% to ¥17.7 billion, or $113 million, primarily reflecting strong sales of Anshin Palette, the new medical insurance product launched in December, as well as Miraito, the newest cancer insurance product, and Tsumitasu.

AFLAC U.S.

AFLAC U.S. SELECTED OPERATING RESULTS FOR THE QUARTER

(IN MILLIONS OF DOLLARS)

1Q26

1Q25

% Change

Total net earned premiums

$ 1,555

$ 1,502

3.5 %

Adjusted net investment income

201

202

(0.5) %

Total adjusted revenues

1,779

1,721

3.4 %

Total benefits and claims, net

734

716

2.5 %

Total adjusted expenses

682

647

5.4 %

Pretax adjusted earnings

363

358

1.4 %

Change
in bps

Persistency rate (12-mo. rolling)

79.3 %

79.3 %

—

Total benefits and claims, net / Net earned premiums

47.2 %

47.7 %

(50)

Total adjusted expenses / Total adjusted revenues

38.3 %

37.6 %

70

Pretax adjusted earnings / Total adjusted revenues

20.4 %

20.8 %

(40)

Aflac U.S. net earned premiums increased 3.5% to $1.6 billion in the first quarter compared to the prior year, reflecting improved sales and continued strong persistency. Adjusted net investment income decreased 0.5% to $201 million. Total adjusted revenues were up 3.4% to $1.8 billion. Pretax adjusted earnings were $363 million, 1.4% higher than a year ago. The pretax adjusted profit margin for the U.S. segment was 20.4%, compared with 20.8% a year ago.

Aflac U.S. sales increased 2.9% in the quarter to $318 million, primarily benefiting from sales of group products.

CORPORATE AND OTHER

CORPORATE AND OTHER SELECTED OPERATING RESULTS

(IN MILLIONS OF DOLLARS)

1Q26

1Q25

% Change

Total net earned premiums

$      182

$      198

(8.1) %

Adjusted net investment income

109

126

(13.5) %

Total adjusted revenues

292

326

(10.4) %

Total benefits and claims, net

109

124

(12.1) %

Interest expense

58

45

28.9 %

Other adjusted expenses

125

114

9.6 %

Total benefits and adjusted expenses

292

283

3.2 %

Pretax adjusted earnings

—

43

(100.0) %

For the quarter, corporate and other reported breakeven pretax adjusted earnings, down from a $43 million gain last year, driven by lower net investment income from reduced hedge benefits, higher interest expense and operating costs, and runoff impacts from closed blocks of business.

*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. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."

1 LIMRA 2024 U.S. Supplemental Health Insurance Total Market Report 

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

A copy of Aflac's financial supplement for the quarter can be found on the "Investors" page at aflac.com.

Aflac Incorporated will webcast its quarterly conference call via the "Investors" page of aflac.com at 8:00 a.m. (ET) on April 30, 2026.

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 MARCH 31,

2026

2025

% Change

Total revenues

$    4,346

$    3,398

27.9 %

Benefits and claims, net

1,832

1,945

(5.8)

Total acquisition and operating expenses

1,289

1,308

(1.5)

Earnings before income taxes

1,225

145

744.8

Income taxes

206

116

Net earnings

$    1,019

$        29

3,413.8 %

Net earnings per share – basic

$      1.99

$     0.05

3,880.0 %

Net earnings per share – diluted

1.98

0.05

3,860.0

Shares used to compute earnings per share (000):

Basic

513,071

544,707

(5.8) %

Diluted

514,785

546,878

(5.9)

Dividends paid per share

$      0.61

$     0.58

5.2 %

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET

(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)

MARCH 31,

2026

2025

% Change

Assets:

Total investments and cash

$ 103,192

$ 107,446

(4.0) %

Deferred policy acquisition costs

8,976

9,083

(1.2)

Other assets

4,112

3,729

10.3

Total assets

$ 116,280

$ 120,258

(3.3) %

Liabilities and shareholders' equity:

Policy liabilities

$   66,782

$   78,828

(15.3) %

Notes payable and lease obligations

7,908

7,751

2.0

Other liabilities

11,629

7,341

58.4

Shareholders' equity

29,961

26,338

13.8

Total liabilities and shareholders' equity

$ 116,280

$ 120,258

(3.3) %

Shares outstanding at end of period (000)

510,530

542,493

(5.9) %

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 in the Company's Japan segment or in Corporate and other. 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 MARCH 31,

2026

2025

% Change

Net earnings

$    1,019

$        29

3,413.8 %

Items impacting net earnings:

Adjusted net investment (gains) losses

(103)

924

Other and non-recurring (income) loss

—

53

Income tax (benefit) expense on items excluded

from adjusted earnings

(15)

(100)

Adjusted earnings

901

906

(0.6) %

Current period foreign currency impact1

8

N/A

Adjusted earnings excluding current period foreign
     currency impact2

$      909

$      906

0.3 %

Net earnings per diluted share

$     1.98

$     0.05

3,860.0 %

Items impacting net earnings:

Adjusted net investment (gains) losses

(0.20)

1.69

Other and non-recurring (income) loss

—

0.10

Income tax (benefit) expense on items excluded

from adjusted earnings

(0.03)

(0.18)

Adjusted earnings per diluted share

1.75

1.66

5.4 %

Current period foreign currency impact1

0.02

N/A

Adjusted earnings per diluted share excluding
     current period foreign currency impact2

$     1.77

$     1.66

6.6 %

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 MARCH 31,

2026

2025

% Change

Net investment (gains) losses

$      (49)

$      963

(105.1) %

Items impacting net investment (gains) losses:

Amortized hedge costs

(15)

(7)

Amortized hedge income

18

30

Net interest income (expense) from derivatives associated

     with certain investment strategies

(57)

(65)

Impact of interest from derivatives associated with

     notes payable1

—

4

Adjusted net investment (gains) losses

$     (103)

$      924

(111.1) %

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 MARCH 31,

2026

2025

% Change

Net investment income

$      956

$      955

0.1 %

Items impacting net investment income:

Amortized hedge costs

(15)

(7)

Amortized hedge income

18

30

Net interest income (expense) from derivatives associated

     with certain investment strategies

(57)

(65)

Adjusted net investment income

$      902

$      913

(1.2) %

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)

MARCH 31,

2026

2025

% Change

U.S. GAAP book value

$  29,961

$  26,338

Less:

Unrealized foreign currency translation gains (losses)

(4,961)

(4,549)

Unrealized gains (losses) on securities and derivatives

(2,681)

(1,251)

Effect of changes in discount rate assumptions

9,458

3,899

Pension liability adjustment

85

42

Total AOCI

1,901

(1,859)

Adjusted book value

$  28,060

$  28,197

Less:

Foreign currency remeasurement gains (losses)

6,253

5,083

Adjusted book value excluding foreign currency remeasurement

$  21,807

$  23,114

Number of outstanding shares at end of period (000)

510,530

542,493

U.S. GAAP book value per common share

$    58.69

$    48.55

20.9 %

Less:

Unrealized foreign currency translation gains (losses) per
common share

(9.72)

(8.39)

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

(5.25)

(2.31)

Effect of changes in discount rate assumptions

     per common share

18.53

7.19

Pension liability adjustment per common share

0.17

0.08

Total AOCI per common share

3.72

(3.43)

Adjusted book value per common share

$    54.96

$    51.98

5.7 %

Less:

Foreign currency remeasurement gains (losses) per common share

12.25

9.37

Adjusted book value excluding foreign currency remeasurement per
common share

$    42.71

$    42.61

0.2 %

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

(EXCLUDING IMPACT OF FOREIGN CURRENCY)

THREE MONTHS ENDED MARCH 31,

2026

2025

U.S. GAAP ROE - Net earnings1

13.7 %

0.4 %

Impact of excluding unrealized foreign currency translation gains (losses)

(2.3)

—

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

(1.1)

—

Impact of excluding effect of changes in discount rate assumptions

4.2

—

Impact of excluding pension liability adjustment

—

—

Impact of excluding AOCI

0.8

—

U.S. GAAP ROE - less AOCI

14.5

0.4

Differences between adjusted earnings and net earnings2

(1.7)

12.2

Adjusted ROE - reported

12.8

12.7

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

3.6

2.9

Adjusted ROE, excluding foreign currency remeasurement

16.4

15.6

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.

EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1

(SELECTED PERCENTAGE CHANGES, UNAUDITED)

THREE MONTHS ENDED MARCH 31,

Including

Currency

Changes

Excluding

Currency

Changes2

Net earned premiums3

(2.1) %

(0.6) %

Adjusted net investment income4

(1.2)

(0.7)

Total benefits and expenses

(2.3)

(0.9)

Adjusted earnings

(0.6)

0.3

Adjusted earnings per diluted share

5.4

6.6

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 - Free Report) reported $4.24 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 1.8%. EPS of $1.75 for the same period compares to $1.66 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $4.33 billion, representing a surprise of -2.05%. The company delivered an EPS surprise of -2.89%, with the consensus EPS estimate being $1.80.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Aflac performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total Benefit /Premium - Aflac Japan: 62.9% versus the three-analyst average estimate of 62.4%.Total Adjusted Expenses/Total Adjusted Revenue - Aflac U.S.: 38.3% versus 36.8% estimated by three analysts on average.Total Benefit /Premium - Aflac U.S.: 47.2% compared to the 49.4% average estimate based on three analysts.Total Adjusted Expenses/Total Adjusted Revenue - Aflac Japan: 19.5% versus the three-analyst average estimate of 20%.Total adjusted revenues- Aflac U.S.: $1.78 billion compared to the $1.77 billion average estimate based on three analysts. The reported number represents a change of +3.4% year over year.Total adjusted revenues- Aflac Japan: $2.17 billion compared to the $2.27 billion average estimate based on three analysts. The reported number represents a change of -4.4% year over year.Total adjusted revenues- Aflac U.S.- Total net earned premiums: $1.56 billion versus $1.55 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change.Total adjusted revenues- Aflac Japan- Other income: $8 million versus the three-analyst average estimate of $7.63 million. The reported number represents a year-over-year change of +60%.Revenues- Other income (loss): $31 million versus $27.72 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +24% change.Revenues- Net investment income: $956 million compared to the $911.96 million average estimate based on four analysts. The reported number represents a change of +0.1% year over year.Revenues- Total net earned premiums: $3.31 billion versus $3.26 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.1% change.Total adjusted revenues- Corporate and other: $292 million compared to the $332 million average estimate based on two analysts. The reported number represents a change of -10.4% year over year.View all Key Company Metrics for Aflac here>>>

Shares of Aflac have returned +6% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Aflac CEO Dan Amos reflects on the company's rise from humble Southern roots to a $60 billion powerhouse — and the bold bet that defined his career: a “damn duck.”

Key Takeaways Aflac Q1 EPS missed estimates as revenues fell 1.9% on lower investment income and FX headwinds.Aflac Japan revenues declined, but new premium sales jumped 25.5% on strong product demand.Aflac U.S. posted revenues and premium growth, supported by higher group product sales. Aflac Incorporated (AFL - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $1.75, which missed the Zacks Consensus Estimate by 2.9%. However, the bottom line improved 5.4% year over year.

Adjusted revenues totaled $4.2 billion, which declined 1.9% year over year. The top line missed the consensus mark by 2.1%.

AFL’s quarterly performance was affected by lower net investment income and exchange rate. Nevertheless, the downside was partly offset by higher sales in the U.S. unit.

AFL’s Q1 PerformanceAdjusted net investment income declined 1.2% year over year to $902 million in the quarter under review.

Net benefits and claims totaled $1.8 billion, which declined 5.8% year over year. Total acquisition and operating expenses decreased 1.5% year over year to $1.3 billion.

Pre-tax earnings increased to $1.2 billion from $145 million in the prior-year quarter.

Inside Aflac’s SegmentsAflac Japan: The segment’s adjusted revenues dipped 4.4% year over year to $2.2 billion in the first quarter and missed the Zacks Consensus Estimate of $2.3 billion. Net earned premiums of $1.6 billion slipped 6.4% year over year and missed the consensus mark by 3.1%.

Adjusted net investment income increased 0.9% year over year to $591 million. The unit’s pretax adjusted earnings rose 5.1% to $759 million but missed the consensus mark of $800.9 million.

New annualized premium sales advanced 25.5% year over year to $113 million on the back of solid sales of Anshin Palette, Miraito and Tsumitasu.

Aflac U.S.: Adjusted revenues of $1.8 billion grew 3.4% year over year and beat the Zacks Consensus Estimate by 0.3%. Net earned premiums advanced 3.5% year over year to $1.6 billion, attributable to higher sales. The metric beat the consensus mark of $1.5 billion.

Adjusted net investment income totaled $201 million, which inched down 0.5% year over year in the quarter under review. Pretax adjusted earnings of the segment increased 1.4% year over year to $363 million. The metric beat the consensus mark of $359.1 million.

The unit’s sales totaled $318 million, up 2.9% year over year, on the back of higher sales of group products.

Financial Position (As of March 31, 2026)Aflac exited the first quarter with total investments and cash of $103.2 billion, down from the 2025-end level of $103.8 billion. Total assets of $116.3 billion decreased 0.2% from the year-end figure.

Adjusted debt amounted to $7.6 billion, down 1.2% from the figure as of Dec. 31, 2025. Adjusted debt to adjusted capitalization, excluding accumulated other comprehensive income, was 21.2%, which improved 20 basis points (bps) from the 2025-end level.

Total shareholders' equity of $30 billion advanced 1.6% from the 2025-end figure.

Adjusted book value per share increased 5.7% year over year to $54.96. Adjusted return on equity, excluding foreign currency impacts, was 16.4%, which improved 80 bps year over year.

AFL’s Capital DeploymentAflac bought back shares worth $1 billion in the first quarter of 2026. Management paid a dividend of $315 million in the same quarter.

AFL’s 2026 OutlookAflac still expects a benefit ratio of 60-63% for the Aflac Japan unit in 2026. The metric for the Aflac U.S. unit is still projected to be in the 48-52% range.

The expense ratio for Aflac Japan is still estimated to be 20-23%. The same for Aflac U.S. is reiterated to be in the band of 36-39%.

Underlying earned premiums were likely to witness a year-over-year decline of 1-2% for the Japan unit in 2026. Net earned premiums for the U.S. unit were likely to be at the lower end of the 3-6% range.

The pretax profit margin for Aflac Japan is still estimated to be between 33% and 36%, and the same for Aflac U.S. is projected to be in the range of 17-20% for 2026.

AFL’s Zacks RankAFL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?Several companies in the insurance space, including RenaissanceRe Holdings Ltd. (RNR - Free Report) , AMERISAFE, Inc. (AMSF - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:

RenaissanceRe reported first-quarter 2026 operating income of $13.75 per share, which surpassed the Zacks Consensus Estimate by 24.2%.  The bottom line improved from the year-ago quarter’s operating loss of $1.49. Total operating revenues declined 16.6% year over year to $2.6 billion. The top line missed the consensus mark by 10.6%. RNR’s quarterly earnings were aided by a decline in expenses and strong underwriting performance in both segments. Improved combined ratio and fee income contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments.

AMERISAFE reported first-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. The bottom line declined 16.7% year over year. Operating revenues increased 7.9% year over year to $81.75 million but missed the consensus estimate by 0.9%. AMSF’s quarterly result was affected by higher expenses and weaker underwriting margins, with additional pressure from lower fee income and weaker investment income. Stronger premium growth partially offsets the downside.

Hartford posted first-quarter fiscal 2026 core earnings per share of $3.09, up 40.5% from $2.20 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $3.29 by 6.1%. Operating revenues totaled $5.09 billion, up 7% year over year, but missed the consensus mark by 2.1%. HIG’s weaker-than-expected results were caused by less favorable prior-year reserve development, higher expenses and pressure in Employee Benefits. The negatives were partially offset by high demand for expensive risk events, stronger investment income and a massive turnaround in Personal Insurance.

Key Takeaways Aflac is positioned for growth as sales rise in both Japan and the U.S. markets.Japan sales surged 25.5% in Q1 2026, while pretax profit margin climbed to 35%.Aflac faces risks from operating cash flow pressure and a premium forward P/E of 15.71X. Aflac Incorporated (AFL - Free Report) is well-poised to grow on the back of growing sales in both Japan and the U.S. markets and rising margin in Japan. Its shares climbed 4.7% in the year-to-date period compared with 5% growth of the industry.

Aflac — with a market cap of $59.1 billion — operates as a supplemental health and life insurance products provider. Based in Columbus, GA, it has strong footprints in the United States and Japan. Courtesy of solid prospects, this presently Zacks Rank #3 (Hold) stock is worth retaining at the moment.

Aflac’s U.S. segment continues to recover strongly, with sales rising 3% year over year to $1.6 billion in 2025 and 2.9% in to $318 million in the first quarter of 2026. Multiple acquisitions, product innovation, virtual channel growth and agent recruitment are expected to sustain momentum and reinforce its competitive positioning.

Meanwhile, sales in Japan jumped 16% to $498 million in 2025 and 25.5% to $113 million in the first quarter of 2026. Solid sales of Anshin Palette, Miraito and Tsumitasu are driving the numbers. The segment’s pretax profit margin is on the rise with 30.5% in 2023, 36% in 2024 and 36.7% in 2025. In the first quarter of 2026, pretax profit margin was at 35%, up from 31.8% in the year-ago period.

Furthermore, AFL’s benefit ratio from Japan business declined to 62.9% in the first quarter from 65% in the previous quarter. The company expects the metric to be within 60-63% in 2026. Aflac U.S. benefit ratio was 47.2% in the first quarter, while the full-year guidance is pegged at 48-52%.

Estimates for AflacThe Zacks Consensus Estimate for AFL’s current-year earnings is pegged at $7.12 per share, which witnessed one upward estimate revision in the past week against none in the opposite direction. The consensus mark for current-year revenues is pinned at $17.1 billion. Aflac’s earnings beat on estimates in two of the last four quarters and missed twice, the average being 7.9%.

Key RisksThere are a few factors that investors should keep an eye on.

Operating cash flow has remained under pressure, declining 23.2% in 2022, 17.8% in 2023, 15.1% in 2024 and 5.6% in 2025. While the metric rebounded sharply in first-quarter 2026, rising 64.3% year over year, the company will need to sustain this momentum for a meaningful turnaround.

Aflac’s shares trade at a forward P/E of 15.71X, above both its five-year median of 12.93X and the industry average of 12.91X, indicating the stock is priced at a premium and leaving less room for outsized upside from current levels.

Better-Ranked PlayersSome better-ranked stocks in the broader insurance space are Hamilton Insurance Group, Ltd. (HG - Free Report) , Slide Insurance Holdings, Inc. (SLDE - Free Report) and Radian Group Inc. (RDN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Hamilton Insurance’s current-year earnings of $3.95 per share increased 49 cents over the past week. HG’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 84.8%. The consensus estimate for current-year revenues is pegged at $2.87 billion.

The consensus estimate for Slide Insurance’s current-year earnings is pegged at $3.51, which signals 4.5% year-over-year growth. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 41.8%. The consensus mark for Slide Insurance’s current-year revenues of $1.45 billion implies a 25.9% year-over-year jump.

The consensus estimate for Radian Group’s current-year earnings is pegged at $5.23 per share, which indicates 17.5% year-over-year growth. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 10.7%. The consensus estimate for RDN’s current-year revenues is pegged at $1.22 billion.

On May 28, 2026, we delve into the discounted cash flow (DCF) analysis for Aflac Inc AFL , a company that has shown a price performance of +5.2% year-to-date and +13.4% over the past year. Despite its recent fluctuations, the stock has garnered attention in the financial community.

DCF Earnings-based intrinsic value of $110.09 compared to the current price of $114.85 (margin of safety: -4.3%) DCF FCF-based intrinsic value stands at $64.36, indicating a second opinion on valuation GF Score™ of 75/100 suggests a reliable assessment of the DCF inputs What Is AFL Worth? DCF Earnings-Based Model The DCF earnings-based model for Aflac Inc assumes a current earnings per share (EPS) of $6.92, with a projected growth rate of 9.9% over the next ten years. This growth is then discounted at a rate of 11%, which combines the risk-free rate and equity risk premium. Following this growth phase, the model assumes a terminal growth rate of 4% for the subsequent ten years, also discounted at 11%. The following table summarizes the key assumptions used in this model:

Parameter Value Current EPS (TTM, excl. non-recurring) $6.92 10-Year Growth Rate 9.9% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The two-stage DCF model provides a comprehensive valuation of Aflac Inc. The first stage, covering years 1-10, estimates the growth of EPS at 9.9% per year, resulting in a growth stage value of $65.54 per share. The second stage, covering years 11-20, assumes a terminal growth rate of 4%, leading to a terminal stage value of $44.55 per share. The summary of these calculations is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 9.9%, discounted at 11% $65.54 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $44.55 Intrinsic Value Growth + Terminal $110.09 With the current price of $114.85, the intrinsic value of $110.09 indicates that Aflac Inc is fairly valued, with a margin of safety of -4.3%. It is important to note that GuruFocus utilizes EPS figures excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the AFL DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Aflac Inc is calculated at $64.36. When compared with the earnings-based intrinsic value of $110.09, there is a significant divergence between the two models. The FCF-based valuation suggests that the stock is modestly overvalued, with a margin of safety of -78.5%. This discrepancy highlights the importance of considering multiple valuation methods when assessing a company's worth.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Aflac Inc is calculated at $110.16, providing a third perspective on the company's valuation. GF Value™ is a proprietary measure from GuruFocus, derived from historical trading multiples, past business growth, and future performance estimates. When comparing the three models, the earnings-based DCF and GF Value™ align closely, both suggesting that the stock is fairly valued, while the FCF model indicates overvaluation. For more insights, visit the GF Value™ page.

What Does AFL's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtesting from 2006 to 2021. The following table summarizes Aflac Inc's GF Score™ metrics:

Metric Rating GF Score™ 75/100 Financial Strength 6/10 Profitability 6/10 Growth 4/10 Valuation 7/10 Momentum 8/10 The predictability rank for Aflac Inc is 1 out of 5 stars, indicating that the DCF model may be less reliable for this stock. For more information, visit the AFL stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks that receive low predictability ratings tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus suggests that Aflac Inc is fairly valued based on the earnings-based DCF and GF Value™, while the FCF model indicates overvaluation. Overall, investors should consider these insights carefully. For the full DCF analysis, visit the AFL DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is AFL's intrinsic value based on DCF?

[Answer: earnings-based $110.09, FCF-based $64.36]

Is AFL overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for AFL?

[Answer using predictability rank 1/5]

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

, /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) announced today that President of Aflac Incorporated and Aflac U.S. Virgil R. Miller, along with Senior Executive Vice President and Aflac Incorporated Chief Financial Officer Max Brodén, will participate in a fireside chat at the Morgan Stanley U.S. Financials Conference on June 9, 2026 at 10:30 a.m. ET.

The presentation will be webcast live. Please click on the following link at least 15 minutes prior to the presentation to allow time to register or sign in.

https://event.webcasts.com/starthere.jsp?ei=1765811&tp_key=900d193922&tp_special=8

A replay of the presentation will be available within 24 hours after the conclusion of the live event using the same web address.

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. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."

1 LIMRA 2025 U.S. Supplemental Health Insurance Total Market Report
2 As of March 31, 2025, Aflac estimates based on company data 

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 or 800.235.2667 or [email protected]

Media contact – Ines Gutzmer, 762.207.7601 or [email protected]

SOURCE Aflac Incorporated

Aflac Incorporated (AFL) Presents at Morgan Stanley US Financials Conference 2026 Transcript