Slide 1: Aflac Incorporated
Af#ac. 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, Senior Executive Vice President, CFO
Max K. Brodén Senior Executive Vice President CFO, Aflac Incorporated
Slide 4: 4Q24 Earnings Per Share
4Q24 Earnings Per Share 0.46 3.42 4Q23 4Q24 Net EPS (diluted) 643.5% 1.25 1.56 4Q23 4Q24 Adjusted EPS (diluted)* +24.8% 1.25 1.57 4Q23 4Q24 Adjusted EPS ex-FX* +25.6% *Non-GAAP financial measure. See appendix for information about this measure. 4
Slide 5: ROE View
ROE View 4.8 29.9 10.5 12.012.2 14.5 ROE (%) Adjusted ROE* (%) Adjusted ROE ex FX Remeasurement* (%) 4Q23 4Q24 *Non-GAAP financial measure. See appendix for information about this measure. 5
Slide 6: Aflac Japan Maintains Solid Persistency
Aflac Japan Maintains Solid Persistency 93.4% 93.4% 93.3% 93.3% 93.4% 4Q23 1Q24 2Q24 3Q24 4Q24 6
Slide 7: Aflac Japan 2024: Favorable experience leading to a stronger margin
Aflac Japan 2024: Favorable experience leading to a stronger margin Benefit Ratio % 63 62 Expense Ratio % 21 19 Pretax Profit Margin % 36 35 62.5% 19.1% 36.0% 2024 Revised Outlook Ranges YTD Actual Operating Ratios 7
Slide 8: Aflac U.S. Maintains Solid Persistency
Aflac U.S. Maintains Solid Persistency 78.6% 78.7% 78.7% 78.9% 79.3% 4Q23 1Q24 2Q24 3Q24 4Q24 8
Slide 9: Aflac U.S. 2024: Providing customers value, scaling growth and solid margin
Aflac U.S. 2024: Providing customers value, scaling growth and solid margin Benefit Ratio % 47 45 Expense Ratio % 40 38 Pretax Profit Ratio % 21 19 46.8% 38.5% 2024 Outlook Ranges YTD Actual Operating Ratios 9 21.1%
Slide 10: Strong Capital Ratios (Including an ESR >270%)
Strong Capital Ratios (Including an ESR1 >270%) Solvency Margin Ratio (Fiscal year ending March 31,%) 917 941 889 1136 2021 2022 2023 2024 12/24e Combined Risk-Based Capital Ratio2 (Fiscal year ending December 31,%) 550 659 732 710 2020 2021 2022 2023 2024e >650>1150 10 1Regulatory ESR with undertak
Slide 11: Adjusted Leverage Ratio: Below the 20-25% range
Adjusted Leverage Ratio*: Below the 20-25% range 19.7% 20.4% 19.5% 21.0% 19.7% 4Q23 1Q24 2Q24 3Q24 4Q24 *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 245 288 283 280 277 700 750 800 500 750 Dividends Repurchase 4Q23 1Q24 2Q24 3Q24 4Q24 Dividends and Share Repurchase ($ millions) 12
Slide 13: Aflac 2025 Outlook
Aflac Japan Aflac U.S. Aflac 2025 Outlook Benefit Ratio 64% - 66% Expense Ratio 20% - 23% Pretax Profit Margin 30% - 33% 48% - 52% 36% - 39% 17% - 20% 2025 - 2027 Estimated Annual Ranges
Slide 14: Aflac Incorporated
Af#ac. Incorporated
Slide 15: Appendix
Appendix
Slide 16: 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 17: 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 debt is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding 50% of subordinated debentures and perpetual bonds and all pre-funding of debt maturit
Slide 18: 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 December 31 2024 2023 %Change Net Earnings per diluted share $3.42 $0.46 643.5% Items impacting net earnings Adjusted net investment (gains) losses (1.95) 0.77 Other and non-recurring (income)
Slide 19: Reconciliation of Net Earnings to Adjusted Earnings
Reconciliation of Net Earnings to Adjusted Earnings1 Three Months Ended December 31, in millions of Dollars 2024 2023 %Change Net Earnings $1,902 $268 609.7% Items impacting net earnings Adjusted net investment (gains) losses (1,084) 450 Other and non-recurring (income) loss 22 — Income tax (benefit
Slide 20: Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE
Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE Three Months Ended December 31, in millions of Dollars 2024 2023 U.S. GAAP ROE - Net earnings1 29.9% 4.8% Impact of excluding unrealized foreign currency translation gains (losses) (4.8) (0.8) Impact of excluding unrealized gains (losses)
Slide 21: Reconciliation of U.S. GAAP Book Value per Share
Reconciliation of U.S. GAAP Book Value per Share At December 31, in millions of Dollars 2024 2023 %Change U.S. GAAP book value per common share $47.45 $38.00 24.9% Less: Unrealized foreign currency translation gains (losses) per common share (9.09) (7.03) Unrealized gains (losses) on securities and
Slide 22: Adjusted Leverage Ratios
Adjusted Leverage Ratios In millions 2024 2023 Notes Payable $7,498 $7,364 50% of subordinated debentures and perpetual bonds (282) (315) Pre-funding of debt maturities — (211) Adjusted debt1 7,216 6,839 Total Shareholders’ Equity 26,098 21,985 Accumulated other comprehensive (income)loss: Unrealize