Aflac Incorporated · NYSE:AFL
Aflac — Q3 2024 Earnings Presentation
21 slides from Aflac's earnings presentation, Oct 31, 2024
Slide 1: Aflac Incorporated
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 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 meani
Slide 3: Max K. Brodén, Executive Vice President, CFO
Max K. Brodén Executive Vice President CFO, Aflac Incorporated
Slide 4: 3Q24 Earnings Per Share
3Q24 Earnings Per Share Net EPS (diluted) Adjusted EPS (diluted)* Adjusted EPS ex-FX* (106.4)% +17.4% +19.0% $2.64 $2.19 $2.16 $1.84 $1.84 $(0.17) 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 *Non-GAAP financial measure. See appendix for information about this measure. 4
Slide 5: ROE View
ROE View 29.1% 15.6% 16.7% (1.5)% 3Q23 3Q24 ROE (%) Adjusted ROE* (%) *Non-GAAP financial measure. See appendix for information about this measure. 5
Slide 6: Aflac Japan Maintains Solid Persistency
Aflac Japan Maintains Solid Persistency 93.5% 93.4% 93.4% 93.3% 93.3% 3Q23 4Q23 1Q24 2Q24 3Q24 6
Slide 7: Aflac Japan 3Q24
Aflac Japan 3Q24: Favorable experience leading to better than expected margin Benefit Ratio % Expense Ratio % Pretax Profit Margin % 44.7% 63 21 36 2024 Revised Outlook Ranges 20.0% QTD Actual Operating Ratios 62 19 35 49.2% 7
Slide 8: Aflac U.S. Maintains Solid Persistency
Aflac U.S. Maintains Solid Persistency 78.7% 78.7% 78.7% 78.9% 78.6% 3Q23 4Q23 1Q24 2Q24 3Q24 8
Slide 9: Aflac U.S. 3Q24
Aflac U.S. 3Q24: Providing customers value, scaling growth and solid margin Benefit Ratio % Expense Ratio % Pretax Profit Ratio % 47.6% 47 40 21 2024 Outlook Ranges 20.8% QTD Actual Operating Ratios 38.0% 45 38 19 9
Slide 10: Strong Capital Ratios
Strong Capital Ratios Solvency Margin Ratio Combined Risk-Based Capital Ratio1 (Fiscal year ending March 31,%) (Fiscal year ending December 31,%) 732 710 >1100 659 1136 >650 941 531 550 917 889 881 2020 2021 2022 2023 2024 9/24e 2019 2020 2021 2022 2023 9/24e 1 Combined RBC ratio is the aggregated r
Slide 11: Adjusted Leverage Ratio
Adjusted Leverage Ratio*: Within the 20-25% range 21.0% 20.4% 19.7% 19.5% 18.8% 3Q23 4Q23 1Q24 2Q24 3Q24 *Adjusted Leverage ratio is computed as: Adjusted debt to Adjusted capitalization ex-AOCI. See appendix for information about this measure. 11
Slide 12: Continued Tactical Capital Deployment
Continued Tactical Capital Deployment Dividends and Share Repurchase ($ millions) 750 800 700 700 500 248 245 288 283 280 3Q23 4Q23 1Q24 2Q24 3Q24 Dividends Repurchase 12
Slide 13: Slide 13
Slide 14: Appendix
Appendix
Slide 15: Glossary of Non-U.S. GAAP Measures
Glossary of Non-U.S. GAAP Measures The Company defines these non-U.S. GAAP financial measures 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 ave
Slide 16: Glossary of Non-U.S. GAAP Measures (cont'd)
Glossary of Non-U.S. GAAP Measures (cont’d) The Company defines these non-U.S. GAAP financial measures as follows: • Adjusted return on equity excluding foreign currency impact is adjusted earnings excluding the current period foreign currency impact divided by average shareholders’ equity, excludin
Slide 17: Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings per Diluted Share
Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings per Diluted Share Three Months Ended September 30 2024 2023 %Change Net Earnings per diluted share $(0.17) $2.64 (106.4)% Items impacting net earnings Adjusted net investment (gains) losses 2.40 (0.85) Other and non-recurring (inc
Slide 18: Reconciliation of Net Earnings to Adjusted Earnings
1 Reconciliation of Net Earnings to Adjusted Earnings Three Months Ended September 30, in millions of Dollars 2024 2023 %Change Net Earnings $(93) $1,569 (105.9)% Items impacting net earnings Adjusted net investment (gains) losses 1,347 (504) Other and non-recurring (income) loss — (3) Income tax (b
Slide 19: Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE
1 Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE Three Months Ended September 30, in millions of Dollars 2024 2023 U.S. GAAP ROE - Net earnings2 (1.5)% 29.1% Impact of excluding unrealized foreign currency translation gains (losses) 0.3 (4.5) Impact of excluding unrealized gains (losse
Slide 20: Reconciliation of U.S. GAAP Book Value per Share
1 Reconciliation of U.S. GAAP Book Value per Share Three Months Ended September 30, in millions of Dollars 2024 2023 %Change U.S. GAAP book value per common share $44.60 $38.63 15.5% Less: Unrealized foreign currency translation gains (losses) per common share (7.43) (7.64) Unrealized gains (losses)
Slide 21: Adjusted Leverage Ratios
Adjusted Leverage Ratios (In millions) 2024 2023 Notes Payable $7,978 $6,961 50% of subordinated debentures and perpetual bonds (313) (299) Pre-funding of debt maturities — — Adjusted debt1 7,666 6,663 Total Shareholders’ Equity 24,830 22,669 Accumulated other comprehensive (income)loss: Unrealized