Company Overview

Aflac Incorporated, founded in 1955 and headquartered in Columbus, Georgia, is a prominent leader in the supplemental health and life insurance industry. The company provides these specialized insurance products to millions of customers across two primary markets. As of September 2024, Aflac Inc. held a market capitalization of $57.88 billion, solidifying its position among major insurance providers in the United States. The company employs approximately 12,690 people as of September 24, 2025.

Business Segments and Distribution

Aflac operates through two distinct business segments, each catering to different geographic markets:

Aflac Japan Segment

This segment offers a comprehensive suite of insurance products in Japan, including cancer, medical, nursing care, whole life, GIFT insurance, WAYS, child endowment, and Tsumitasu insurance. The segment demonstrated strong performance with a 12.3% year-over-year sales increase in Q3 2024, largely attributed to the successful launch of a new product.

Aflac U.S. Segment

In the United States, the Aflac U.S. segment provides accident, disability, cancer, critical illness, hospital indemnity, dental, vision, and life insurance products. This segment experienced a 5.5% sales growth in Q3 2024, with notable strength in group life, absence management, and disability offerings.

The company employs a diversified distribution strategy, selling its products through individual and corporate agencies, banks, independent associates/career agents, and brokers. This approach ensures a broad reach across both its domestic and international customer bases.

Financial Performance and Market Position

Aflac's financial performance reflects its established presence in the insurance market. The company's market capitalization of $57.88 billion as of September 2024 indicates its significant scale.

Recent Financial Results

#### Q3 2024 Performance

Aflac reported mixed results for the third quarter of 2024:

- Adjusted Earnings Per Diluted Share: Increased by 17.4% to $2.16.

- Total Revenues: $2.9 billion, compared to $5.0 billion in Q3 2023.

- Earnings Surprise: Beat the Zacks Consensus Estimate of $1.70 per share by 27.06%.

- Net Earnings/Losses: Recorded net losses of $93 million ($0.17 per diluted share), a significant shift from the $1.6 billion earnings ($2.64 per diluted share) in the prior year. This was primarily due to increased foreign exchange-related losses from a 12.9% strengthening of the yen during the quarter.

#### Q4 2024 Performance

- Total Revenues: $5.4 billion, compared to $3.8 billion in Q4 2023.

- Net Earnings: $1.9 billion ($3.42 per diluted share), a substantial increase from $268 million ($0.46 per diluted share) in the prior year.

Key Financial Metrics and Stock Performance

- Market Capitalization: $57.88 billion (September 2024)

- All-time High Stock Price: $115.50 (October 4, 2024)

- 52-Week High: $115.50

- 52-Week Low: $96.95

- Beta Coefficient: 0.61 (Indicating lower volatility relative to the broader market)

Dividend Information

Aflac maintains a consistent dividend policy for its shareholders:

- Last Dividend Per Share: $0.58

- Dividend Yield (TTM)%: 2.07%

- Dividend Frequency: Quarterly

- Q3 2024 Dividend Declaration: $0.50 declared for Q3 2024 earnings.

Capital Position and Shareholder Returns

The company maintains a robust capital position, with an SMR of approximately 1,100% and a combined RBC estimated to be over 650%. Aflac Inc. demonstrated its commitment to shareholder value by repurchasing $500 million in shares during the reported quarter. Unencumbered Holding Company Liquidity stands at $3.9 billion, which is $2.1 billion above its minimum balance, providing substantial financial flexibility.

Growth Outlook and Strategy

Aflac is focused on capitalizing on growth opportunities within both its operating segments. The company anticipates improved sales in its Japan business for 2024, driven by its focus on third-sector products and their introduction to younger demographics. Management also expresses optimism regarding profitable growth in its U.S. business.

Key strategic initiatives include enhancing productivity, maintaining underwriting discipline, and effective expense management, which are expected to bolster profit margins. The introduction of new products and refined distribution strategies are projected to benefit both segments.

Specific Guidance for 2024:

- Benefit Ratio (Aflac Japan): Expected between 62-63%

- Benefit Ratio (Aflac U.S.): Expected between 45-47%

- Expense Ratio (Aflac Japan): Estimated between 19-21%

- Expense Ratio (Aflac U.S.): Estimated between 38-40%

Aflac's dual-market strategy, strong capital reserves, and consistent dividend payments position it as a notable and stable player in the supplemental insurance sector. The company continues to pursue expansion of its product offerings and distribution capabilities across both Japan and the United States.